Piraeus Bank Said to Sell Stake in Athens Water to Paulson

Piraeus Bank SA (TPEIR) sold its 9.9 percent stake in Athens Water Supply & Sewage Co. (EYDAP) to Paulson & Co. for 86.3 million euros ($120 million), according to a Piraeus Bank official who asked not to be identified in line with policy.

Athens Water, Greece’s biggest water utility with a 1.06 billion-euro market value, is 61 percent state-owned, according to data compiled by Bloomberg. The government said in its last fiscal plan it will sell the company next year to help meet a 2.2 billion-euro revenue target from state asset sales in 2015.

A spokesman for Paulson & Co. declined to comment. Piraeus, the country’s second-largest bank by assets, acquired its stake in Athens Water, the second-biggest holding in the company, when it bought part of Agricultural Bank of Greece in 2012.

Athens Water shares surged 7 percent to 9.95 euros today, the biggest one-day advance by the utility since Sept. 2. That topped a 0.7 percent rise for the Athens Stock Exchange general benchmark index. Thessaloniki Water Supply & Sewage Co. is Greece’s second-biggest water utility.

To contact the reporter on this story: Nikos Chrysoloras in Athens at nchrysoloras@bloomberg.net

To contact the editors responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net Randall Hackley, Jerrold Colten

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.