Under the proposal, Piraeus suggested a consideration of E2 in cash and 0.36 shares of Piraeus Bank for each Bank of Cyprus share, taking the total proposed consideration to E10.63 per Bank of Cyprus share, based on the closing price of Piraeus Bank on the Athens Stock Exchange on December 19, 2006.
The Cypriot bank’s board of directors said that it felt the proposed purchase price did not reflect the true value of the company. In addition, the proposal does not incorporate a premium as is customary in this type of transaction.
Therefore, the board rejected the proposal on the grounds that the bid was not in the best interest for its shareholders.
