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Denmark's Vestjysk Bank placed on trading halt
September 25, 2012 / 7:31 AM / 5 years ago

Denmark's Vestjysk Bank placed on trading halt

COPENHAGEN, Sept 25 (Reuters) - 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 rise.

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 week.

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)

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