The government of Russia is evaluating several candidates for acquiring the stake it owns in VTB. The U.S. private equity firm TPG Inc. is among several potential purchasers that want to acquire the government’s shares of VTB. VTB representatives commented that TPG is a reputable company with a solid portfolio of investments in various banking institutions. The bank’s officials said that TPG’s successes can make the company an ideal investor from the viewpoint of Russian authorities. At the same time, there are no definite commitments that the Russian government would sell its stake in VTB to TPG.  

The names of all other companies and hedge funds vying for the state-controlled shares of VTB have not been disclosed.

The Russian state has an 85.5-percent interest in VTB. There have been several announcements throughout 2010 that the Russian state might sell a 10-percent stake in the country’s second largest bank.

It is possible that TPG would be one of a number of investors that would each acquire from 1 to 1.5 percent in VTB. The head of VTB Mr. Andrei Kostin shared this scenario with the media earlier this year.     

In August of 2010, the Minister of Oil of Kuwait confirmed to Russia Today’s Arabic TV Channel Rusiya Al-Yaum that the Middle Eastern country received Russia’s offer to buy into VTB. While VTB officials held a series of talks with possible investors from the Persian Gulf, the negotiations did not yield any definite agreements.    

So far, Rosimuschestvo, Russia’s Federal Property Agency entered into an agreement with Merrill Lynch to conduct the sale of as much as 10 percent of VTB.

Merrill Lynch will soon prepare a complete assessment of the value of the shares of VTB. The financial services company will engage a third-party assessor and create an expert CPO analysis. Merrill Lynch will then show Rosimuschestvo the offers from buyers.