France’s second largest bank, Société Générale, is currently in talks with Turkey’s Vakifbank regarding the purchase of Vakifbank, in partnership with another investor. The meetings have so far proven successful, reported Milliyet.
The transaction could cost Société Générale up to €300 million ($264 million). Turkey’s Akbank, Dogan Holding, Turk Dis Ticaret Bankasi, Oyakbank and Turk Ekonomi Bankasi Investment are expected to post rival bids for Vakibank by the first week of June.
Located in Ankara, Vakifbank is a mid-sized retail bank with $4.6 billion in assets. With 405 branch offices throughout Turkey, Vakifbank provides a range of retail banking services to its customers. It is currently a state-run bank but is slated for privatization under Turkey’s reform pledges to the World Bank.
Struggling with an economic crisis, the Turkish government agreed in May 2001 to restructure its financial sector in return for aid from the International Monetary Fund. The authorities abandoned a floating peg between the Turkish lira and the dollar in February as they sought to halt a flight of capital. The Turkish currency has since lost about 40 percent of its value against the dollar. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
