Piraeus Bank, Greece’s fourth-largest lender, said yesterday it will soon submit a comprehensive proposal to Bank of Cyprus showing all benefits that could result from a partnership. “An alliance can create many synergies. Our positions overlap nowhere, no jobs are under threat and we complement each other ideally,” said Piraeus President Michalis Sallas. Nevertheless, he acknowledged that a partnership could not work if the other side had diverging priorities and pursuits. Separately, Piraeus Bank said it has reached a preliminary agreement to acquire a 30 percent stake in insurer European Reliance. Based on the deal, Piraeus Bank will buy new shares to be issued by the insurer at 2.24 euros each, with existing European Reliance shareholders waiving their rights. The insurer has a current market value of 49 million euros. (Kathimerini, Reuters)

The independent Institute of Energy for Southeastern Europe (IENE) has proposed to the government the creation of a special agency that would promote the production of hydrocarbons in Greece. IENE’s general secretary, Tereza Fokianou, told a press briefing that all exploration for oil in Greece has ceased since 1998, despite interest expressed by several foreign companies in recent years. IENE believes Greece has a high oil potential, while it is one of the least explored areas in the Mediterranean.

Turkish shares and the lira gave up early gains to close mixed yesterday as investors digested the impact of the European Union decision to partially suspend Turkey’s accession talks. The lira closed 0.5 percent firmer at 1.4250 against the dollar in interbank trade, having eased back from a peak during the morning of 1.4205 – its strongest level since May 17. The main share index, which rose as much as 1.3 percent in early trade, ended 0.63 percent lower at 39,213.02. “Although the EU decision was expected, it did not have the positive impact needed to lift the index above 40,000 points. There is resistance at 39,800,” said Acar Securities research director Zeynel Abidin Balci. (Reuters)

Piraeus Bank yesterday launched special loans for individuals and companies wishing to install photovoltaic systems. Bank officials said such projects carry very low risk, as the Public Power Corporation is obliged to buy the electricity thus produced at rates five times those charged to households, on a 20-year contract.

HSBC raised price targets on OTE to 26 euros from 23 euros and Cosmote to 23.5 euros from 21 euros. The brokerage said it still prefers overweight-rated OTE to Cosmote in the domestic telecoms market due to merger and acquisition catalyst and strong restructuring momentum. HSBC kept its “neutral” rating on Cosmote. (Reuters)