Danish Bank to Take Over Iceland’s Kaupthing?

Posted 22/11/2008 - 04:47 by sami

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2008-11-20 (All day)

Danish bank FIH is considering taking over Kaupthing Bank and possibly some of the assets from the bank’s bankruptcy estate with the participation of foreign claimants. These ideas have allegedly been well received within Iceland’s government.

According to Morgunbladid, if the takeover goes through, a foreign bank would be operated in Iceland, partnership would be spread and it would be easier for the new bank to obtain foreign trade.

Re-branding would probably be necessary, considering the damaged reputation of Iceland’s three largest banks in the international arena.

A group of foreign investors have expressed interest in gaining ownership in the new-state run banks by changing debts into equity to some extent. Among claimants are many of Europe’s largest banks.

According to Morgunbladid’s sources, such ideas have been discussed on serious terms within Iceland’s government and presented to foreign claimants, although the final implementation of executing such ideas has not been decided.