Exclusive - Raiffeisen Bank halts sale of Hungary unit: sources
VIENNA/FRANKFURT (Reuters) - Austrian lender Raiffeisen Bank International has decided not to sell its Hungarian unit at this stage, two sources familiar with the situation told Reuters on Wednesday, after media reports that such a deal could be imminent.
Raiffeisen, central and eastern Europe's second-biggest lender, had said in November it was reviewing offers for its loss-making Hungarian business as it focuses on more promising markets in the region.
Hungarian media had reported that small Hungarian lender Szechenyi Bank, in which the state holds 49 percent, was in talks for a purchase.
But the two sources said Raiffeisen had decided against doing a deal on the grounds that selling at a knock-down price would trigger losses the bank was not prepared to accept.
"The deal is off," one of the sources said.
Raiffeisen declined to comment on the matter.
(Reporting by Michael Shields, Georgina Prodhan and Arno Schuetze; Editing by Pravin Char)
