-VTB has no plans to buy Borodin's stake in Bank of Moscow.
BANKING AND CREDIT NEWS-October 3, 2011--VTB has no plans to buy Borodin's stake in Bank of Moscow(C)2011 M2 COMMUNICATIONS http://www.m2.com
3 October 2011 - Russia's VTB Group (MCX:VTBR), which recently boosted its holding in Bank of Moscow (MCX:MMBM) to 80.75% as part of the lender's ongoing bailout, has no plans to buy the interest in the troubled bank owned by its ex-president Andrei Borodin, the group's CEO, Andrei Kostin, said on Saturday.
The stake held by Borodin in Bank of Moscow is "very small", he said. Meanwhile, VTB intends to buy insurer Stolichnaya Strakhovaya Gruppa, which is still a shareholder in the lender.
On Friday, VTB Group raised its stake in Bank of Moscow to 80.75% from 46.48% held earlier. As part of the transaction, Stolichnaya Strakhovaya Gruppa saw its stake in the lender decline to 3.19% from 17.32%.
Also on Friday, state-owned Deposit Insurance Agency (DIA) extended a RUB295bn (USD9bn/EUR6.8bn) loan to Bank of Moscow, which was utilised the next day for the purchase of RUB295bn in government bonds, placed by the country's finance ministry with sinking fund provisions for the purpose of the bailout.
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