BRUSSELS (Reuters) - European Union regulators opened on Friday an investigation into 1.2 billion euros (£862.6 million) in state aid granted by Danish authorities to Vestjysk Bank (CO:VJBA), concerned that the lender's planned overhaul would not ensure its long-term viability.
The European Commission, which had temporarily cleared the Danish aid in April 2012 while it waited for the bank to come up with its revamp plan, said it would look into several elements before making a final decision.
"The Commission will also assess whether the bank and its owners contributed sufficiently to the costs of the restructuring and whether appropriate measures have been put in place to minimise the competition distortion brought about by State aid," the EU executive said.