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VTB could finance Alrosa's acquisition of Polyus Gold stake

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MOSCOW, August 14 (RIA Novosti) - Vneshtorgbank (VTB), Russia's second largest state-owned bank, could finance Alrosa's bid to buy a stake in Polyus Gold, the country's leading gold producer, for at least $2 billion, the bank's president said Tuesday.

In an interview with the Kommersant business daily Andrei Kostin said: "We are interested in a deal worth at least $2 billion with Polyus Gold. The management of Alrosa [Russia's largest diamond producer], has asked us to finance the deal, where we will act as the lending bank."

However, the VTB chief said no preliminary agreement had yet been signed, as the parties were currently structuring the deal.

Two businessmen, Mikhail Prokhorov and Vladimir Potanin, are currently dividing the Interros managing company and each holds a 22% stake in Polyus Gold, whose market capitalization is currently around $7.7 billion. The first rumors that Prokhorov would sell his stake in the gold producer emerged earlier this month.

Last week, VTB's stock plunged by a record 6% from the May IPO share price. The shares of VTB, Russia's second largest bank in terms of assets and equity, have lost almost 7% on Russian trading floors and 8% on the London Stock Exchange over the week.

The government controls a 77.5% stake in the bank.

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