Goldman Sachs, Deutsche Close to Acquire NBG's Buyout Firm - Analyst Blog

By
A A A

The Goldman Sachs Group, Inc. ( GS ) and Deutsche Bank AG ( DB ), through their private equity wings, are inching closer to finalizing a deal to acquire the buyout unit of National Bank of Greece SA ( NBG ), per a Bloomberg 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 Companies ( PJC ) is a better-ranked stock in the finance sector. It carries a Zacks Ranks #1 (Strong Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DEUTSCHE BK AG (DB): Free Stock Analysis Report

GOLDMAN SACHS (GS): Free Stock Analysis Report

NATL BK GR-ADR (NBG): Get Free Report

PIPER JAFFRAY (PJC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DB , GS , NBG , PJC

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Tiny Homes With Big Appeal
Tiny Homes With Big Appeal          

Stocks

Referenced

Most Active by Volume

270,887,127
    $93.89 unch
225,243,115
  • $40.93 ▼ 2.74%
135,900,109
  • $47.52 ▲ 1.80%
89,467,924
  • $5.35 ▼ 1.11%
85,105,358
  • $16.95 ▼ 0.53%
80,748,539
  • $39.80 ▼ 4.21%
68,491,586
  • $3.57 ▼ 1.79%
62,097,356
  • $100.96 ▼ 0.82%
As of 9/19/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com