Bulgarian DZI Bank (market cap of $175.6m) has been suspended from
public trading for the nest 30 days, whilst its majority owner DZI Financial
Group (owner of 50.1% directly and controlling 70% indirectly) considers
multiple takeover bids. Whilst only EFG Eurobank has confirmed submitting
a binding bid, other interested banks include Alpha Bank, KBC, and OTP
Bank. DZI bank had total assets of $712.4m at the end of 1H06.
Our view:
We do not expect the news today to have any trading impact, as OTP Bank's
interest in DZI Bank has been known for sometime. The level of competition
is likely to ensure the acquisition is keenly priced but DZI Bank offers a good
fit for OTP Bank, as it would further strengthen subsidiary DSK's leading
position in Bulgaria.