COPENHAGEN, Sept 25 Trading in shares in Danish
bank Vestjysk Bank has been halted on the Copenhagen
stock exchange on Tuesday, after speculation mounted that there
will be more bank failures or mergers in Denmark.
Business daily Borsen on Tuesday named the bank as one of
the country's small and middle sized banks which could be next
in line and forced to seek a merger or a takeover as writedowns
The Danish state holds 55.39 percent of the bank's stock
after the bank converted state loans into shares.
Last week, Spar Nord Bank said it would acquire
smaller rival Sparbank, lifting expectations for more
consolidation in Denmark's fragmented banking sector as the
financial crisis bites and regulations toughen.
The deal was the second involving small Danish banks in a
Vestjysk bank's management was in a meeting and unavailable
for comment, and the stock exchange declined to give a reason
for the trading halt.
(Reporting by Mette Fraende; Editing by Louise Heavens)