Bloomberg News

Denizbank ‘Cheap’ on Volatile Markets, Sberbank’s Gref Tells TV

May 29, 2012

OAO Sberbank is taking advantage of the ‘low’ valuation caused by market turbulence in its bid for Dexia SA (DEXB)’s Turkish unit Denizbank AS (DENIZ), Herman Gref, chairman of Russia’s biggest lender, told Russia Today.

Bank shares are inexpensive and had it not been for market turbulence, Dexia would have never sold the bank or would have offered it “for much more,” Gref said in an interview, according to an e-mailed statement from the channel.

The Moscow-based lender began talks to buy Denizbank in Istanbul from Dexia, the Franco-Belgian lender said on May 24. Sberbank may agree to pay as much as 1.5 times Denizbank’s book value, said one person close to the deal. The stock currently trades at 2.01 times book value, according to data compiled by Bloomberg.

To contact the reporter on this story: Ksenia Galouchko in Moscow at

To contact the editor responsible for this story: Gavin Serkin at

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