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VBAG to be Acquired by BAWAG?

Published: March 2, 2012; 10:50 · (Vindobona)

According to market rumors, the financially stricken VBAG could be taken over by the U.S. investment fund owned Bawag.

VBAG to be Acquired by BAWAG? / Picture: © BAWAG

A remake of the merger between VBAG and Bawag is currently discussed. Hannes Androsch, Vice-President of the state-owned banking holding Fimbag did not exclude this option.

After massive losses in Eastern Europe, VBAG had to sell its holding for the CEE region (VBI) to Sberbank and became partially nationalized. After scandals and financial troubles, Bawag was itself taken over by the U.S. investment fund Cerberus in 2006. Before, Bawag was held by the Austrian Federation of Trade Unions (ÖGB).

Bawag did not comment this report. According to market observers, Bawag is willing to negotiate with VBAG´s management. Androsch is said to support a “reasonable market adjustment”.