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Leading Austrian finance companies spurn BAWAG

Vienna Insurance Group and Erste Bank will not participate in the bidding process for BAWAG, the two companies have revealed in press statements.

Vienna Insurance Group, the largest insurer in Austria, and major lender Erste Bank have announced that they will definitely not be placing a bid during the current bidding process for the trade union bank BAWAG, which is up for sale.

The financial services firms said their decisions to pull out of the bidding process was due to reaching the conclusion that the specified sales terms put Austrian banks and insurance companies at a disadvantage compared to foreign bidders.

The Austrian government organized the sale of troubled BAWAG is order to save it from collapse following a series of damaging business episodes.

While the withdrawal of two of Austria’s most respected financial companies is a blow to the bail out plans, hopes remain strong that other bidders will establish firm interests.