Bancolombia Sticks to its Story

Colombia’s Bancolombia Monday reiterated its view of the merger that created it, amid continued investigation into alleged irregularities. “Bancolombia reaffirms its view that the acquisition process of Banco de Colombia by BIC and the subsequent merger of these two entities were conducted in accordance with international customary standards and practices for this type of transaction and in accordance with Colombian law,” says the bank. “This acquisition process was validated at the time by the respective Colombian authorities,” it adds. The investigation focuses on an alleged unlawful approval of a transaction by the board of directors of the Central Bank of Colombia and the board of directors and the president of Banco Industrial Colombiano (BIC) during the acquisition of Banco de Colombia and its subsequent merger. Bancolombia local shares fell 1.59% Monday, amid a 1.08% retracement in financial stocks.