According to the Hungarian press, Banco Popolare di Verona e Novara Scrl, an Italian commercial bank is in advanced talks regarding the acquisition of a Hungarian financial institution. The deal may be concluded soon, but the Italian bank has not disclosed the name of its acquisition target. Market rumours point to FHB Bank as being among the possible acquisition targets.
Our view: As the FHB Bank is state-owned, any possible further privatisation is likely to proceed via a formal process. Nonetheless, M&A speculation and rumours may have a short-term positive impact on the stock price today.