Wednesday March 4, 2015 Search
Weather | Athens
20o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Piraeus-MIG tie-up to lead to restructurings

By Yiannis Papadoyiannis

Market experts expect the deal announced last week between the Piraeus Group and Marfin Investment Group to develop into a broader cooperation toward the merging of enterprises, aimed at creating stronger and more competitive firms.

Although Piraeus Bank states that no such planning or decision has been made, analysts point to the fact that both groups control a number of enterprises in sectors such as coastal shipping, health, food and information technology, among others.

Having absorbed as many as six banks in recent months, Piraeus now finds itself either a stakeholder or the main creditor of dozens of enterprises in various economic sectors that have run into problems due to the financial crisis.

For instance, in coastal shipping, Piraeus is the biggest creditor of ANEK, whose bank obligations amount to 400 million euros. In health, Piraeus is the main creditor of the Henry Dunant Hospital, through the former ATEbank, while it now also holds stakes in a number of dairy companies and cooperatives. In addition, the lender is among the main creditors of companies in the sectors of fish farming, information technology and tourism.

MIG controls 92 percent of food and dairy industry Vivartia, 89 percent of coastal shipping firm Attica, 70 percent of healthcare group Hygeia and 86 percent of IT company Singular Logic, to name but a few. Analysts say that ANEK, the Henry Dunant Hospital and other companies could join up with their MIG counterparts, thereby creating stronger and more competitive corporations. That way the Piraeus Group would resolve longstanding problems in its financial reports and reap capital gains as MIG’s main shareholder.

Nevertheless, Piraeus sources say that even though the group is going to play a decisive role in the restructuring of sectors and enterprises – with a special unit already set up within the bank to that end – Wednesday’s agreement for the acquisition of a 17.7 percent stake in MIG through convertible bonds should not be associated with this crucial strategy.

Bank of Greece Governor Giorgos Provopoulos has repeatedly called on commercial banks to take the initiative in terms of restructuring business forces. He has said that just as in the successful consolidation of the credit sector, banks should take a leading role in the restructuring of the economy’s other sectors. Provopoulos adds they ought to encourage business cooperations that will lead to stronger and more competitive units. He has also asked for banks to proceed to the targeted channeling of funding to healthy sectors and enterprises so as to support the economy’s new, outward-looking production model.

ekathimerini.com , Monday May 19, 2014 (22:16)  
Bourse benchmark and turnover head south
Germany says third Greek aid package not on Eurogroup agenda
Success of Greek reforms rest on implementation, says Lagarde
De Guindos insistent that Greece likely to need another aid program [Update]
PPC hits back at criticism over workers’ pay hikes
The former head of the union of Public Power Corporation workers (GENOP), Nikos Fotopoulos, on Wednesday lashed out at criticism following a decision by PPC and GENOP on a new collective lab...
Probe launched following delays in arresting pedophile
An administrative holdup prevented authorities from arresting a 40-year-old suspected pedophile before Tuesday, when he was caught with a minivan that he used to lure children and where he w...
Inside News
SOCCER
Super League restarts, but behind closed doors
Deputy Minister for Sports Stavros Kontonis announced on Wednesday the resumption of the Super League this weekend after it was suspended last week following crowd trouble at the Athens derb...
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a «sacrifice» to win trophies or leave. "Olympiakos ...
Inside Sports
FOCUS
Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
Strapped for cash and under pressure to deliver on reforms, Greece's new radical government has ruffled feathers in Brussels by not respecting the diplomatic niceties of the negotiating tabl...
COMMENTARY
Up the creek without a paddle
One of the issues that dominated the country’s pre-election debate was whether SYRIZA, which eventually won the vote, had worked out a plan B. It was clear from the start that its much-hyped...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. PPC hits back at criticism over workers’ pay hikes
2. Probe launched following delays in arresting pedophile
3. Suspects in Conspiracy breakout case released
4. Workers protest withdrawal of Hellas Gold processing plant license
5. Thieves posed as PPC workers to rob pensioner in Fokida
6. Bourse benchmark and turnover head south
more news
Today
This Week
1. Up the creek without a paddle
2. Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
3. Panousis says no official decision on undocumented migrants
4. More Germans booking holidays in Greece, tourism chief says
5. For Greece, a lesson from Ireland, Kenny says
6. ECB glimpse of Cyprus debt shows limits of bank cleanup
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.