BBVA in talks on possible Garanti stake buy

 

Spain's second-biggest bank BBVA said on Thursday it was in talks over a possible deal to buy a stake in Turkey's Garanti Bank, but said it could not give details about the terms of any deal.

The lender is prepared to pay between $4.5 billion and $5 billion for General Electric's 21 percent stake in Garanti Bank, but only if it can have a role in its management, Turkish media reported on Wednesday.

GE first announced in February it wanted to sell its stake in Garanti but it has had difficulty in finding a buyer, particularly with so many Western banks struggling in the wake of the financial crisis.

Although Garanti is viewed as one of Turkey's best-run banks and its shares are favoured by foreign investors, the fact that only a costly minority stake was on offer was also a deterrent.

BBVA shares were 1.1 percent lower at 9.9 euros at 0704 GMT. Garanti was 0.6 percent higher.