The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Lone Star’s Cyprus pullback might not be the end

The things that attracted Lone Star to Bank of Cyprus are present in banks in Greece and elsewhere in peripheral Europe. If other private equity-like investors take an interest, domestic political blessing could be the key to success.

Photo: iStock

Lone Star’s decision not to launch a formal offer for Bank of Cyprus, after the bank rejected three earlier unsolicited offers, ends a short but diverting chapter for the Cypriot lender, at least for now. Under Irish takeover rules, unless another acquirer emerges, Lone Star can only come back with an offer after six months.

Yet even if Lone Star does not make another bid, this may not be the end of private equity and strategic interest in Cypriot, Greek and other peripheral eurozone lenders – and it could presage other deals.

In Greece, as in Cyprus, investors suffered huge losses in the last decade and they are worried about a re-run of the 2008 crash and a eurozone crisis because of the Ukraine war.

Today, Greek and Cypriot banks suffer from rock-bottom valuations despite impressive balance-sheet clean-ups and cost cutting; surprisingly robust local economies; little pick up in non-performing loans as a result of the energy crisis so far – and, above all, despite rising profitability in the back of higher eurozone interest rates.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?