Telekom Srbija has reportedly made a formal offer for a majority stake in the Danube Bank (Dunav Banka).
Serbian publication Kamatica cited sources close to the bank’s major shareholder, the Danube insurance company (Dunav Osiguranje), as saying the…
Telekom Srbija has reportedly made a formal offer for a majority stake in the Danube Bank (Dunav Banka).
Serbian publication Kamatica cited sources close to the bank’s major shareholder, the Danube insurance company (Dunav Osiguranje), as saying the incumbent telco believes the purchase would enable it to better compete with Telenor Serbia, which acquired the equity of KBC Bank’s Serbian unit last year.
The deal granted Telenor a banking licence and formed part of the Nordic parent group’s strategy to push into mobile financial services.
Telekom Srbija, the Danube Bank and the Danube insurance company were not immediately available for comment.
Local media reported in March that Telekom Srbija intended to buy the bank and that the two organisations had developed a “framework agreement” for their future cooperation.
In late April, it emerged that the Serbian government plans to sell Telekom Srbija, valued at about €1.5bn, within a year to help address its budget deficit. Deutsche Telekom has been touted as the favoured buyer, but the company itself has declined to comment. The European Bank for Reconstruction and Development (EBRD) has said it may be interested in investing in the Serbian telco if the privatisation goes ahead.
