REUTERS. Russia’s No. 1 lender Sberbank plans to bid at an auction to buy 20.85% of Turkish lending institution Garanti Bank from US concern General Electric Co., a source close to the negotiations said. The equity stake in Garanti Bank, the most popular asset on the Istanbul Stock Exchange, is worth nearly $3.7 bln taking into account the current stock valuations. American giant General Electric is going to divest its stake in the Turkish bank as part of the program aimed at reducing its financial division.
“GE is pleased Sberbank will bid along with other four or five contenders. GE is glad that under the current (market) environment this asset has stoked such interest," a Reuters source said on terms of anonymity. According to the same source, the bidding deadline is March 12.
State-controlled Sberbank strives to gain a foothold abroad. In 2008 Sberbank flagged plans to bring external earnings to 5—7% of its corporate profit within five years. Over the past few years Garanti Bank has become one of the most successful lenders in Turkey. In 2009 the lender’s securities soared 143%, outstripping both the pace of the banking sector index (116%) and the index of the Istanbul Stock Exchange as a whole. Analysts believe that Dogus Group, which holds 30.5% of Garanti Bank, could make an attempt to up its interest by snapping up the block of shares from General Electric.
According to the Turkish media, bidders seeking to grab Garanti Bank’s securities could be Spain’s Banco Santander, Italy’s Intesa Sanpaolo and an investment fund from the Persian Gulf. A market source said in February that British banks HSBC Holdings Plc and Standard Chartered Plc are also interested to bid for Garanti Bank.
