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Raiffeisen Pays Discout on Polbank on Falling Valuation

Raiffeisen Bank International AG, eastern Europe’s third-biggest lender, completed the purchase of EFG Eurobank Ergasias SA’s Polish unit for a lower price than when the deal was announced a year ago.

Raiffeisen paid 460 million euros ($608 million) for a 70 percent stake in Eurobank’s Polbank, 30 million euros less than agreed in February 2011, the Vienna-based lender said in a statement today. The price is 1.5 times Polbank’s book value, less than the 1.7 agreed when the deal was announced. That could drop further, depending on Polbank’s equity as of the closing date today, Raiffeisen said.