0613 GMT - Erste Group Bank's takeover of a 49% stake in Santander Bank Polska is financed better than expected as the cash-based consideration avoids a rights issue, Keefe, Bruyette & Woods say in a research note. The Austrian bank and the Spanish lender reached a 7 billion-euro deal, which also includes half of asset manager Santander TFI. "The implied price to [tangible book value]...is slightly higher than the average of previous deals, but this is a rare opportunity to enter the largest banking sector in CEE with double-digit market shares," analysts Ben Maher and Hugo Cruz write. The earnings per share accretion and return on tangible equity seem attractive but the 11% return on investment isn't particularly high, they say. This could be forgiven given the deal's long-term strategic appeal, according to the analysts. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 06, 2025 02:13 ET (06:13 GMT)

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