Russia’s Sberbank Eyes OTP Bank, Raiffeisen To Enter E. Europe – Media

The acquisition of a major bank with a network in eastern Europe is part of Sberbank's strategy, Interfax reported on Monday, quoting a source familiar with the Russian bank's plans.

Sberbank is interested in large banks with an extensive network and subsidiaries in the region, the source said.

"There are two such banks - OTP and Raiffeisen, right now," he said, adding that Sberbank officials have met with those banks' managers.

There have been talks but no decisions have been taken, the source told Interfax.

The source also said Sberbank was not considering buying assets in eastern Europe right now because it is currently focused on lending to the Russian economy.

Expanding into eastern Europe does not necessarily mean acquisitions, a strategic alliance or a equity swap might also be possible, the source said. "There can be a 25-percent equity swap, or other options, various forms of transaction are under discussion."

Interfax quoted another source as saying that Sberbank had already hired Morgan Stanley to advise it on a possible acquisition. The second source also said he had heard that Morgan Stanley was already buying OTP Bank shares on Sberbank's behalf.

OTP Bank is Hungary's largest bank and has subsidiaries in Bulgaria, Romania, Serbia, Croatia, Montenegro, Ukraine and Russia. The bank's market capitalisation is about 3.2 billion euro.

Raiffeisen Zentralbank is the parent of Austria's biggest banking group which has subsidiaries across central and eastern Europe.

Russia's central bank is the largest shareholder in Sberbank with a 57.6% stake. Sberbank was Russia's largest bank by assets in the first three quarters of 2008, according to the Interfax-100 ranking of the country's biggest lenders compiled by the Interfax Center for Economic Analysis. It has market capitalisation of 14.3 billion euro.

($=0.792 euro)