Piraeus places EUR 10 cap on Bank of Cyprus

Piraeus Bank has placed a EUR 10 per share cap on Bank of Cyprus Pcl (BOCY) after it emerged that the Greek bank, which holds a 8.2% stake in the Cypriot bank sold 120.000 shares at EUR 10.003 per share on Tuesday, November 14, 2006.

On the same day, Piraeus had purchased 2483 shares at EUR 9.92 per share but it also sold 120.000 shares at EUR 10.003 for a value of EUR 1.2 mln.

The Piraeus trade, coupled with intense selling pressure by the Staff Provident Fund of BOC and Eurolife, the life insurance subsidiary of BOC at the same price of EUR 10 per share effectively mean a cap has been placed on the Bank of Cyprus shares.

Although previously Eurolife had explained to the Financial Mirror that their sales are due to restrictions regarding their holdings in the Bank as the price goes higher, the sales emerging from the Provident Fund, which just recently covered all its shortfall is seen as an attempt by the Management Committee to book some of the recent gains and never again allow the pension fund to go into deficit.