Treichl, Erste: We Got Punished By Reality For Buying BCR
Buying Romania’s bank Banca Comerciala Romana (BCR) has proved to be a very “expensive venture” for Erste Bank, as the global financial and economic crisis severely impacted the region, said Andreas Treichl, Chief Executive Officer of the Austrian bank.
“In 2006 we bought BCR. We haven’t got punished by the markets, although it was by far our most expensive acquisition. But we got punished by reality,” Treichl told investors at a conference call Monday.
Erste paid EUR3.75 billion for 61.88% in BCR, Romania’s largest lender by assets. It subsequently raised its stake into the local lender to 82%.
“When the financial crisis severely affected the central and eastern Europe, our expensive acquisition turned into a very expensive venture,” Treichl added.
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