Embattled Austrian Bank Hypo sold for €65m

Austrian Bank Hypo has been sold to Anadi Financial Holdings which is owned by Brit Sanjeev Kanoria, also co-owner of the Indian SREI group, for 65.5 million euros (about 85 million U.S. dollars). The offer from Anadi Financial Holdings was half of the book value of the bank, but on Friday a contract for the sale of all shares was signed, ORF reported. With the purchase of the bank Kanoria now receives a European Union (EU) banking license. Hypo board member Gottwald Kranebitter said Kanoria and his company were the highest bidder, and that the sale represented a new chapter for the embattled bank. Kanoria said at a press release he planned to introduce new products, open more markets and promote the core region around the state of Carinthia in which the bank is based. The bank was placed under 100 percent Austrian state ownership in 2009 due to being under threat of insolvency, where it became part of EU required restructuring and privatization. (1 U.S. dollar = 0.77 euro)