The taming of Creditanstalt

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The taming of Creditanstalt

A year after Bank Austria's deal to take over Creditanstalt, Gerhard Randa has cut the acquisition down to size. No more treasury, no more stand-alone overseas banking. Rump Creditanstalt is a domestic bank that will live or die on somewhat hollow competition. As David Shirreff reports, it's all rather a comedown for this once very blue-blooded bank.

A numbers man


Gerhard Randa, Austria's undisputed number one banker, flanked by four senior colleagues, gives a rare audience to the Viennese press corps. Two of the sharpest ­ Stefan Janny of the weekly profil, and Margarete Freisinger of the out-of-town Salzburger Nachrichten ­ sit dead centre, cigarettes and other weapons at the ready.

Behind Randa is a tapestry depicting jousting knights on horseback in the main square of medieval Vienna. In the Bank Austria building today, in that same square, Randa is facing his least favourite opponents.

It's exactly a year since Randa, chairman of savings bank Bank Austria shocked the little world of Austrian finance by announcing a bid for patrician but state-controlled Creditanstalt. Within a month Randa had it in his grasp. But it took another 11 months, until December 16 1997, to present the world with a structure for the merged banking group. And even then the structure can't be fully confirmed until the Creditanstalt and Bank Austria annual general meetings on June 4 and June 5, respectively.

Unlike the link-up between Swiss Bank Corp and UBS, this merger was born of a tortuous agreement betwen Bank Austria and Austria's coalition government.


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