Something of a flurry in the market for HSBC on Wednesday, with the shares up 1 per cent as a rumour did the rounds suggesting HSBC might bid for Alpha Bank of Greece.
Clearly, followers of HSBC would like to see the bank turn its attention once again to more emerging economies — although buying Alpha would cost the British bank upwards of £7bn.
So is this deal for real? We’ve traced the story to an article from mergermarket, our associate M&A news service. But for those without a (high-end) subscription, here’s the full text:
“HSBC, the UK banking giant, is still interested in the acquisition of a bank such as listed Greek financial services group Alpha Bank, a company source has said. “We are looking at all the larger Greek banks,” the source said. “The main thing holding us back, however, is that we don’t want to go hostile,” he added.
“Asked about targets, he said it should be a large bank with a Balkans presence. The three biggest banks in Greece are Alpha Bank, Eurobank and National Bank of Greece. Whilst not conceding that it is formally looking at Alpha or Eurobank, the targets fit HSBC’s profile, the source said and agreed it had been informally eyeing them. “In any case, there is consolidation afoot in the sector in Greece and it would make no sense for Alpha or Eurobank to look at one another as there would be too few synergies due to the number high street branches,” he said.
“Asked about a small bank, such as Attica, which will be privatised, or Proton Bank and other small private targets in the news, the source said that HSBC is not interested in a small bank – “it is not worth the risk of acquiring a small bank,” he added. “We are also looking at a partnership venture with a Greek bank,” he said, without divulging further details. “We are exploring all possibilities,” he added.
“Earlier reports have suggested suggested Alpha, Piraeus or Bank of Cyprus as potential takeover candidates. Each would provide market share and exposure outside of Greece. HSBC currently has a network of 20 branches in Greece.”