In an interview with Bloomberg, NBG CFO Anthimos Thomopoulos has stated that NBG has no imminent plans to acquire a bank in the region and that the bank is not in discussions. Our view: The news is somewhat negative although it is no surprise that yet another takeover rumour surrounding Banca Transilvania has been squashed. The bank is an obvious target for a takeover (as the largest remaining locally owned bank in Romania) and there has been much speculation over potential buyers in recent months and years. However, the profitability of the bank has been under pressure from sharply deteriorating asset quality and a margin squeeze and we expect the owners, mainly local entrepreneurs with some 25% (of which 5% in the hands of chairman Horia Ciorcila), to hold out for more attractive pricing than they are likely to receive in the current environment.