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The Goldman Sachs Group, Inc. (GS - Analyst Report) and Deutsche Bank AG (DB - Analyst Report), 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 - Snapshot Report) is a better-ranked stock in the finance sector. It carries a Zacks Ranks #1 (Strong Buy).

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