4. The Acquisition of Finansbank What factors contributed to the success of Finansbank and to its current troubles? a. b. 0. Please provide a quantitative analysis of Finansbank's relative performance versus other banks in emerging markets and/or in the U.S. To nd additional information you may check the US Federal Reserve Economic Data or other sources you prefer. Can you think of qualitative factors that contributed to Finansbank's success? Can you back up your answers with quantitative arguments? What do you think are the factors that explain the current problems of Finansbank? [Please substantiate your arguments with nancial calculations as much as possible] Finansbank ownership and control structure: a. b. Are there any particular concerns that you may have about Finansbank given its control structure? What would you do to try to check for nancial evidence of such concerns? Understanding the proposed transaction: Please look at the graph/map of the structure and the terms of the proposed transaction between FIBA shareholders and National Bank of Greece a. Provide at least 5 qualitative reasons why Ozyegin should accept the offer. b. Provide at least 3 qualitative reasons why Ozyegin should not accept the offer. Why would Ozyegin be interested in selling the Turkish operations and buying back the non-Turkish operations? a. Why would he sell only some parts of the bank and buy back other parts? b. What are the capital needs of the bank over the next three years? Can the capital needs of the bank be met by Ozye gin? c. What do you think would happen if he does not sell the bank and tries to run it on his own? [Please justify with as much quantitative evidence as you can] How much is FIBA worth? a. b. What value would Multiples and Comparable Transaction suggest? Do the valuations by Bender, YF Securities and NBG seem sensible? Why or why not? Do they raise any concerns? [Please address each valuation separately]. Please make as many assumptions as you need to try to conduct your own DCF (or other type) of valuation of Finansbank. You will need to make assumptions since the case does not provide enough information. But the assumptions you made about parameters need to be justied or anchored on similar parameters at the time. So, if you were Ozyegin, would you take the NBG's offer? Summarize your reasons why or why not. 6. How would you feel about about the transaction as a minority shareholder? a. b. How much are the Non-Turkish operations worth? Please provide a way to value the different parts of the bank in different countries. Given the relative values of the parts of the bank, what would be your main concerns with this transaction? [Please provide as many quantitative arguments as possible for both questions]