Banks, EU – Baltic States, Financial Services, Investments, Latvia

As the business portal Nozare.lv was informed by Filips Rajevskis, public relations consultant in Latvia for the investment group WMHY Group, the offer was made for the private capital management business of Parex, and also includes an offer to acquire the loan portfolio of Parex in the CIS countries, as well as the subsidiaries Parex Asset Management, and AP Anlage und Privatbank in Switzerland.

Rajevskis also told Nozare.lv that while a specific sum had been named in the offer, it would not be made public.

Hambro himself indicated that he saw the acquisition of Parex shares as an interesting investment in the current economic situation in Latvia. In his view, with the help of WMHY Group, the bank could again become a European-level player in the finance industry, especially considering Riga's position as a bridge between Europe and the CIS countries and the bank's experience in this area, writes LETA.

Interest in Parex has also been expressed by the Spanish bank Santander, according to information in the possession of the Latvian State Television show "De facto". Other banks known by the show to be interested include Swedbank, Nordea and DnB Nord.

General talks are said to have already taken place with these banks, but have come to a halt due to the fact that the main owner of Parex, the state, is still in no position to say in which proportions and at what price the bank will actually be sold.

However, until now it has been those banks who already operate in the Latvian market who have been mentioned as the main buyers of Parex. Market share expansion has up till now been believed to be the main argument for the purchase, as the potential buyers or strategic investors in Parex will probably have to spend around EUR one billion for a bad credit portfolio, restrictions on activity, and a weakened money flow and reputation.

Santander is the largest Spanish commercial bank, and in 2008 was the world's third most profitable bank. During the crisis it has actively expanded into the UK and the Nordic countries, with activities such as its acquisition of Bradford&Bingley. Santander has a very large presence in Latin America.