NewsLocalImminent new bill on foreign investment as Lone Star set for fresh...

Imminent new bill on foreign investment as Lone Star set for fresh BoC buyout bid

US fund Lone Star is expected to make a fresh bid by Friday to buy out Bank of Cyprus as Parliament prepares to approve legislation allowing it to prevent the deal if deemed necessary.

In fact, the House plenum is expected to vote in a harmonization bill providing for the establishment of a legal framework concerning direct foreign investments in the Republic of Cyprus on Thursday.

This will also allow for a block, if deemed necessary, on the acquisition of the Bank of Cyprus by Lone Star.

Specifically, the Ministry of Finance will have the possibility to have a say in the approval of a large investment in organizations that it considers to be of sensitive economic importance to the country.

The US fund has, so far, submitted three proposals for the buy-out of the island’s largest bank over the past two years. All three have been unanimously rejected by the Board of Bank of Cyprus.

The latest offer by Lone Star was roughly 700-million-euro with analysts saying the fund’s interest marks a sharp turnaround in fortunes for BoC.

The Bank was bailed out in 2013 amid the eurozone debt crisis and had to inflict losses on some depositors.

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