A decisive procedure in the long-standing legal dispute with co-owner Bank Austria is now before the Supreme Court (OGH).
The legal dispute between Bank Austria and the so-called three-bank group has been raging for four years. But now a decisive procedure is before the Supreme Court. Its outcome has a major impact on the ownership structure.
The three successful regional institutes Oberbank, Bank for Tirol and Vorarlberg (BTV) and Bank for Carinthia and Styria (BKS) have mutual interests. Together with Generali-Versicherung, they have the majority through a syndicated structure to protect themselves from hostile takeovers.
Try to blow up the Syndicate of the Three Banks
Bank Austria has held shares in all three institutions for decades, which today together are probably worth between 1.5 and 2 billion euros. You have invested a lot of money and should not have anything to say about it, argues Bank Austria boss Robert Zadrazil. The UniCredit subsidiary has filed a number of lawsuits with the aim of dissolving the syndicate of the three banks.
If successful, it would likely mean that Bank Austria, as the largest shareholder, could take control. Selling the shares would be difficult. But the three-bank group, which is strongly anchored in the federal states, could be a major boost for Bank Austria, which currently has the highest market shares in Eastern Austria.
The bosses of the three banks are fighting for independence
The heads of the three banks, Franz Gasselsberger (Oberbank), Gerhart Burtscher (BTV) and Herta Stockbauer (BKS) want to prevent this and fight for their independence. A number of proceedings have already been decided in their favor at first instance. Now there is a lawsuit against BTV (where Bank Austria has the highest share with 46%) before the OGH.
The charge is that capital increases in the past were more or less self-financed through the Ring investment. If that goes through, millions would have to be repaid, just like with the other banks (the lawsuits will be adjourned until the OGH decision). That would overload the financial strength of the regional institutions and “break up” the syndicate. If the lawsuit is dismissed, everything will remain as it is.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
