Bankers looking for 5 bil. euros from foreign investors

Intense processes have been unfolding in recent weeks in the banking industry in response to the recapitalization of Greek and Cypriot banks.

Given that the financial institutions in Athens and Nicosia should strengthen their capital themselves, bankers are seeking strong alliances, especially from Arab countries and Russia. These procedures should be completed no later than the end of October 2012. The difficulties are many, and the funds private shareholders must provide are very high and can reach even 5 billion euros of a total of 50 billion. It is estimated they will account for approximately 10% of the total capital aid and the remaining 90% will come from the EFSF.

So the meeting held at the headquarters of the EFG Group in Switzerland between the major shareholder Spiros Latsis and the Emir of Qatar Al Thani has sparked intense speculation in Athens about the intentions of the Arabs regarding the Greek banks. The meeting of the two men took place in a warm climate and as information indicates, they also discussed the possibility of a fund in Qatar, which manages funds in excess of 100 billion dollars, investing in the EFG Group, probably in the Greek Eurobank as well.

Meanwhile, diplomatic circles said that Eurobank met in Athens last week with one of the richest Russian businessmen, Dmitry Rybolovlev, who according to Forbes is among the 100 richest people in the world. The Russian tycoon, of just 43 years of age, has studied medicine at the Perm Medical Institute, and upon completion of his degree began his business with fertilizers. In 1995 he became president of the Uralkali company, which is the largest fertilizer producer in Russia, founded in 1930. The company's shares were listed in the London Stock Market, raising a billion dollars, with the value of the company amounting to 12.8 billion dollars. He is a major shareholder of the Monaco football team and held 10% of Bank of Cyprus shares, a percentage which recently decreased significantly, as he did not exercise his rights in the recent capital increase.

It should be noted that another large Russian bank, the VTB Bank, is in advanced discussions with the management of Laiki Bank in Cyprus in order to invest the sum of 1.3 billion euros in its capital.

The Emir of Qatar, Sheikh Hamad bin Al Thani, would have been the largest shareholder of the new bank resulting from the merger of Alpha Bank and Eurobank if the deal had proceeded successfully. The Sheikh’s family controls the Qatar Investment Authority, with funds in excess of 100 billion euros, and the Paramount Services Holding Limited fund with a 4% share in Alpha Bank. He was born on January 1, 1952, in Doha and from June 26, 1995 has been the ruling Emir of Qatar, one of the richest oil producing countries. In fact, Forbes magazine ranked him 7th on the list of the richest members of royal families in the world. His personal fortune exceeds 2 billion dollars.

Last May Qatar bought the Harrods department store in London, offering 2.2 billion dollars to Mohammed Al-Fayed. It also has major holdings in Volkswagen and Porsche, the British supermarket Sainsbury’s and the London Stock Exchange.

In January 2011 it proposed a takeover bid of 1.6 billion pounds to buy Manchester United, but the American owners rejected it.