BBVA Confirms Talks To Buy GE's Stake In Turkey's Garanti
October 21 2010 - 3:36AM
Dow Jones News
Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA) Thursday
confirmed it is in talks to buy a stake in Turkiye Garanti Bankasi
AS (GARAN.IS) that has been put up for sale by General Electric Co.
(GE).
In a regulatory filing, BBVA said the bank cannot assure that
the talks will lead to a deal, nor what terms such a transaction
would have.
People familiar with the talks had told Dow Jones Newswires that
BBVA is in talks to buy GE's 20.85% stake in Garanti in a move that
could eventually see it gain control of Turkey's second-biggest
bank.
According to these people, it is seeking assurances by key
Garanti shareholder Dogus Holding AS, which owns 30.5% of the
Turkish bank, that it will eventually be able to win control over
the lender.
These people say the Spanish bank has been in and out of talks
with GE in recent months. After breaking down in spring,
discussions with GE restarted in recent weeks.
Turkish daily newspaper Milliyet reported Wednesday that BBVA
was the only remaining bidder for the GE stake, after HSBC Holdings
PLC (HBC) had pulled out. The paper said BBVA is prepared to pay
between $4.5 billion and $5 billion for the GE stake, if it can
have a role in Garanti's management. Milliyet said that Dogus Group
is "not warm" to the idea, quoting sources close to Garanti
Bank.
-By Christopher Bjork; Dow Jones Newswires; +34913958123;
christopher.bjork@dowjones.com
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