City asset managers to decide on first Greek bank raise since crisis
Two major UK investment managers will play a part in deciding whether the first capital raise by a Greek bank since the financial crisis goes ahead.
Somerset Capital Management and Odey Capital Management are both significant shareholders in Alpha Services and Holdings.
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The Greek firm, previously known as Alpha Bank, is looking to raise €800m to fund growth plans.
But key shareholder advisory group ISS has said support for the proposal is “not warranted.”
The advisory group suggests “existing shareholders would suffer significant immediate dilution through the proposed capital increase” and that the “risk-reward ratio of the proposal does not appear compelling enough.”
At the time of the raise, a statement from the bank said the capital raise would “take advantage of favourable market conditions.”
The bank claims the prospects for the Greek economy were “especially positive” when they pushed the prospective cash call in May.
JP Morgan and Goldman Sachs are managing the raise, which will need to be approved by shareholders in a vote on June 15.
Both Somerset Capital and Odey declined to comment.
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