The Goldman Sachs Group, Inc. (
Deutsche Bank AG (
), through their private equity wings, are inching closer to
finalizing a deal to acquire the buyout unit of National Bank of
Greece SA (
), per a
report. However, no official revelation has been made so far.
Goldman Sachs Asset Management and DB Private Equity are in
negotiation to shell out around £300 million ($506 million) for the
acquisition of NBGI Private Equity Ltd. This figure is a third less
than the Greek bank's original investment in the firm.
NBGI Private Equity's dismal performance might have pushed National
Bank of Greece to vend off the unit. As per an April document
quoted by Bloomberg News, the buyout unit has underperformed
similar buyout firms and 10 of its 11 funds estimated to incur a
loss of around €25 for every €100 invested.
National Bank of Greece is offloading assets to bolster its capital
position before the European stress tests. The bank is
approximately 84% owned by the Hellenic Financial Stability Fund
(HFSF) - a rescue fund established to maintain stability in the
Greek banking system. The Athens-based bank was rescued last year
by the state with a bailout of €8.5 billion.
For Goldman and Deutsche Bank, the proposed deal seems to be in
keeping with their investment goals.
Currently, Goldman Sachs carries a Zacks Rank #2 (Buy) while
Deutsche Bank carries a Zacks Rank #3 (Hold). Piper Jaffray
) is a better-ranked stock in the finance sector. It carries a
Zacks Ranks #1 (Strong Buy).
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