FHB Bank: HVB Hungary interested in acquisition of FHB

According to Hungarian news agency MTI, citing Mihaly Patai, CEO of HVB Hungary, the bank may bid for a 50% plus one share government stake in FHB Bank, which is likely to be sold this year. According to the CEO, UniCredito is not satisfied with the seventh place of HVB in the Hungarian banking market, therefore it is interested in the privatisation of FHB. The bank spokesman added that any potential bid is dependent on price.

our view: The Ministry of Finance announced in November that the cabinet had approved a plan to sell a stake of 50% + 1 share in FHB Bank to a strategic investor. Market speculation that privatisation will lead to an eventual buyout of minorities has boosted the stock price of FHB Bank. We consider FHB Bank to be overvalued but we would also expect potential buyers to offer a premium, given the strong interest in CEE banking assets. We also expect M&A speculation to intensify in the course of the year.