VTB Bank will begin a road show in Europe and the U.S.Russian VTB bank will start a road show on Monday to offer investors 10% of its shares as part of the government's $59 billion privatization program. So the government plans to earn about $3 billion.
"It was decided to start floating up to 10% of the federal government owned shares in VTB bank among Russian and foreign investors on February 7, 2011. Merrill Lynch, together with Deutsche Bank and VTB Capital, will take bids," the source said following a meeting headed by Shuvalov.
It will be the only flotation of VTB shares in 2011, a source familiar with plans of the offer said. A source close to VTB's supervisory council said it would be difficult for the bank to sell the 10% stake this year.
In 2007, VTB held Russia's first "people's IPO", when shares were sold to households at 13.6 kopecks. After the placement the price fell 80% and never rebounded. The government had planned to sell 35% minus one share in VTB in 2010-2013 as part of its privatization program aimed at plugging budget deficit and increasing management efficiency of the country's largest companies. But 2010 talks with a group of investors led by TPG investment fund to sell the stake for $3 billion flopped.
The road-show would be held in Europe and the U.S. between February 7 and 11, with the pricing scheduled for February 14.Source: RIA News
Date: 07.02.2011 [ID: 281]