Hypovereinsbank has completely redesigned its management and its share value, after having dropped over the past year, went up by 8% yesterday.
The bank has cut seven members from the board of directors (all from the Hypo Bank) after a long battle which had lasted months and contributed to the cynicism of the market., which made its attack soon after Hypo merged with Vereins, at which point an account review revealed a big hole in Hypo’s property sector.
This revelation forced the bank to announce a loss of €1.8bn (DM3.5bn) in order to confront the problem. However, this amount appears to not have been enough after yesterday’s announcement of a further loss of €997m (DM1.95bn).
Nevertheless, the stock market would appear to be relieved after a decision was finally taken as it has freed the bank of a series of further potential problems.
Il Sole 24 Ore, 27 October 1999, page 33
