KOMMERSANT. News agency Interfax reported yesterday quoting sources in the banking circles that Sberbank is in talks over the acquisition of Dresdner Kleinwort (DK), an investment division of German banking group Dresdner Bank. VTB also takes intensive steps to roll out an investment banking business on Western markets, but the development strategy selected by Sberbank seems to be more efficient, the newspaper wrote.
Officially the DK press office in London, Frankfurt and Moscow declined to comment on this news item, saying «these are just rumors that appeared in the Western press at the beginning of this week». Last night Sberbank’s representatives told Kommersant that «the information disclosed by the media is invalid». However, many market players turned out to be aware of Sberbank’s plans.
For example, a source in one of DK’s branches in Europe confirmed that Sberbank mulls picking up Dresdner Kleinwort and one of the bank’s former top managers knows about this. According to him, the bank’s management has had many meetings in Frankfurt in recent months that relate to a possible ownership shakeup. The fact that Sberbank is exploring the possibility of buying DK was also confirmed by the newspaper’s sources close to the Russian lender. «Sberbank had plans to expand its presence in the West and roll out an investment banking business via the purchase of a big bank» — one of them noted, adding that under the circumstances DK is just one of the most suitable targets, as negotiations about its possible sale got under way last year. Several top managers from Russian and foreign investment banks that do business in Russia also know that Sberbank eyes Dresdner Kleinwort.
Dresdner Kleinwort makes up banking group Dresdner Bank that was established in 1872. Dresdner Bank Group operates in more than 60 countries of the world. In terms of assets and client base Dresdner Bank ranks among the leading European banking groups. In 2001 Allianz acquired Dresdner Bank for €24 bln. DK’s FY07 sales amounted to €1,628 mln against €3,111 mln in 2006.
Sberbank’s entry to international markets through the purchase of a foreign bank falls within the international expansion strategy it announced. Sberbank’s CEO and board chairman German Gref said last week that his bank is going to widen its presence on foreign markets in the next 5 years. «We mull breaking onto the markets of two dozen countries» — Gref pledged. According to him, this will be driven by a decline in the market value of banks. «The value of banks was cut nearly in half» — he said noting that now is the best time for Sberbank to make acquisitions.
