www.gulf-times.com - Qatar National Bank has made a higher bid for Denizbank, the Turkish unit of stricken Belgian lender Dexia, after earlier talks stalled over price, four sources familiar with the matter said.
“The bid has been re-activated, and is on the table,” said one source. “The new offer is closer to what Dexia is expecting,” he added, saying that QNB’s original offer had been dismissed as too low.
The Gulf bank quickly has emerged as the most likely buyer, another source familiar with the matter said yesterday.
“The process is ongoing. Whether it happens or not, it will take a long time. The bid has gone up and down,” the person added. (source)
No immediate comment was available from QNB and their advisors Citigroup declined to comment. The sources spoke on condition of anonymity as the matter is not public.
Denizbank shares rose as much as 5.7% on the news.
Dexia put Denizbank on the block last year to shore up its balance sheet. For QNB, the potential acquisition of Denizbank offers an opportunity to expand in the fast-growing Turkish banking market.
Denizbank is worth $5.9bn in the current market after a 49% run-up since news of the sale emerged, and Dexia is understood to be looking for up to $4bn for the bank.
Yet another source said that QNB had originally bid 1.1-1.2 times Deniz’s book value and the Belgian government had wanted 1.5 times book. It was not clear what the revised QNB bid was.
Dexia, crippled by the eurozone crisis, has been trying to sell the Turkish bank for over six months. Two other bidders, HSBC and Sberbank pulled out, leaving QNB as the sole suitor.
People familiar with the matter said last month that Dexia had considered the Qatari offer too low, and was not willing to sell the healthy Turkish business in a fire-sale.
Dexia mandated US investment bank Bank of America in October to advise on the sale. UBS is advising the Belgian government.
With a market value of around $25.8bn, QNB is the largest lender in Qatar. QNB, 50% owned by sovereign wealth fund Qatar Investment Authority, has been seeking a larger regional role as part of an aggressive expansion strategy.
It currently has operations in Jordan, Switzerland, Syria and the United Arab Emirates.
Dexia was rescued by Belgium and France because of its heavy exposure to Greece and after it could no longer secure short-term credit to finance long-term lending activities.
It bought a 75% stake in Denizbank for $2.4bn in 2006 and later raised its ownership to above 99 %.
Source : http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=498770&version=1&template_id=48&parent_id=28 - April 12, 2012
