Russia's second largest bank VTB may gain control of Bank of Moscow as soon as this week by acquiring shares from Credit Suisse and other minority shareholders who own 4.37% in the Moscow government's lender, Kommersant business daily reported on Wednesday.
"This deal, approved by Andrei Borodin (Bank of Moscow president and shareholder) will allow VTB to save $80-100 million and increase its stake to a controlling interest as compared with the deal with Goldman Sachs," the source was quoted as saying.
VTB will increase its stake in Bank of Moscow to a controlling interest by purchasing 2.77% from Credit Suisse and about 1.6% from one of Bank of Moscow's minority shareholders instead of buying a 3.88% share package from Goldman Sachs, which was frozen by an injunction from a London court, a source close to one of the shareholders of the Moscow government's lender told the paper.
In February, VTB approved a gradual acquisition of 100% of shares in Bank of Moscow. The state-controlled lender started its takeover bid with the purchase of a 46.48% stake held by the Moscow government and a blocking interest in Stolichnaya Insurance Group, which owned 17.3% of the Moscow bank.
Borodin, however, was unwilling to cede control of the bank but VTB found a way around his objections by agreeing to purchase a 3.88% stake in the bank from Goldman Sachs.
Goldman Sachs' share would have increased VTB's stake in Bank of Moscow to a controlling interest and the investment bank agreed to sell it for 7.1 billion rubles ($247 million). However, a company close to Borodin filed a complaint with the London court, after which Goldman Sachs' stake was seized.
Bank of Moscow, Goldman Sachs and Credit Suisse officials declined to comment, while VTB said it was ready to maintain constructive dialogue with all Bank of Moscow's minority shareholders.
A Bank Moscow shareholders' meeting is scheduled for April 11, prompting VTB to close the deal as soon as possible.
MOSCOW, March 9 (RIA Novosti)
