BBVA Confirms Talks To Buy GE's Stake In Turkey's Garanti

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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