ECONOMY

CA proposes Emporiki Bank squeeze-out

Credit Agricole stated on Tuesday it has filed a proposal to obtain full control of its Greek subsidiary Emporiki Bank. The French banking giant already holds some 91 percent of the loss-making lender.

Credit Agricole intends to spend 36 million euros on 20.5 million Emporiki shares, or 4 percent of the total, for 1.76 euros each via a voluntary public tender. It then plans to delist the lender from the Athens bourse.

Investors on the local bourse greeted the news with enthusiasm, securing the Emporiki stock a 35.16 percent daily rise to 1.73 euros, after having risen as high as 1.76 euros during the session.

Earlier this month Emporiki suggested that its first-quarter loss contracted by nearly a quarter due to to a decline in provisions. It has targeted a return to profit as of 2012.

Credit Agricole?s proposal is seen as paving the way for a similar move by fellow French lender Societe Generale for the full acquisition of another Greek lender, Geniki.