Fitch: Turkey's Garanti Bank likely to benefit from Intesa acquisition

Published March 10th, 2004 - 02:00 GMT

Turkey's Garanti Bank is forecasted to benefit if acquired by Banca Intesa of Italy (Intesa), according to Fitch Ratings.  


Garanti's major shareholder Dogus Holding and Intesa on March 8, 2004, agreed to start negotiations regarding the acquisition of a majority interest in Garanti. If the negotiations are successful, the acquisition is planned to be finalized by end-September 2004.  


If Intesa were to acquire Garanti, the Turkish bank would represent four percent of Intesa's end-2003 assets, about the same size as the total assets for all three central European banks in which Intesa holds majority stakes.  


For Intesa, the acquisition of Garanti is less likely to be positive in the short-term, but may not be sufficiently material to warrant a change in the Italian bank's ratings.  


Garanti is the third largest privately-owned bank in Turkey, where Dogus Holding owns 55 percent of the total shares. Intesa is the largest bank in Italy and is among the largest 20 banks in Europe in terms of equity.  


Fitch said that it will only announce a rating action after the deal is completed when it can review the new strategy, management structure and terms of agreement. Garanti is rated Long-term foreign and local currency B+, Short-term foreign and local currency B, National Long-term A-, Individual D and Support 4. All the long-term ratings have a Stable Outlook. — (  



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