A thought-provoking piece of news....

Italy's Sanpaolo IMI agrees to buy American Bank of Albania
The Associated Press

Published: October 20, 2006


TIRANA, Albania Italy's Sanpaolo IMI Group said Friday it agreed to buy American Bank of Albania in a deal that values the lender at US$156.9 million (€124.91 million).

Sanpaolo will acquire an 80 percent stake in American Bank from the Albanian-American Enterprise Fund and an option to buy the outstanding 20 percent, the Turin, Italy-based bank said in a statement.

The two parties remain in negotiations on the "necessary details to finalize the operation," and the deal remains subject to regulatory approval.

"Thanks to this operation Sanpaolo IMI strengthens its presence in Albania," Sanpaolo said in a statement. Sanpaolo bought Albanian Italian Bank in May this year.

The Albanian-American Enterprise Fund — a U.S. corporation first funded through a US$30 million (€24 million) grant from the U.S. government, the only shareholder of the bank — confirmed the agreement "in principal," according to a statement from the American Bank of Albania.

Sanpaolo IMI Group has a leading position in Italy, and after merging with Banca Intesa total assets would be €550 billion (US$691 billion), with over 6,200 domestic branches and agencies and more than 1,000 foreign branches.

The combined net income in the first six months of 2006 was €2,6 billion (US$3.2 billion), the bank statement said, adding that the group was the third-largest bank for market capitalization in the Euro zone and the fourth in lending.

"With this transaction, the American Bank of Albania brings into Albania the full power of a major international Banking Group for the continuing development, not only of the banking system, but also for the country itself," the statement said.

Last week, the AAEF said it had received offers from several financial institutions interested in American Bank.

ABA, the single largest lender in the country, serves 67,000 clients, manages US$656 million (€522 million) in assets, and employs 385 people in offices throughout Albania and Greece.

Some 17 commercial banks operate in Albania.