Takeover Panel rejects Axis challenge to PTSB-BAWAG deal

The Irish Takeover Panel has ruled against a challenge to the €1.6 billion merger of PTSB bank with Austrian financial group BAWAG. Axis Capital, co-founded by ex-Bank of Scotland Ireland chief Mark Duffy, had raised objections to the deal. PTSB shareholders have already voted in favor of the BAWAG takeover, but the deal still requires High Court approval later this month.

Axis shared its plans for PTSB today, though it hasn't made a formal offer or secured financing. The Irish Takeover Panel, after reviewing Axis's concerns, concluded that there was no basis to claim a violation of takeover panel rules. Earlier, Axis had proposed a cash offer of €3.20 per share for PTSB, representing a 7.7% premium over the €2.97 offered by BAWAG.

Under Axis's plan, PTSB would become a formidable third player in the Irish banking sector, akin to the role the State supported during the financial crisis. Axis further stated that taking control of PTSB would mean Irish ownership, with an Irish board and decision-making at the helm. PTSB's shares rose in Dublin trading following the news.