OTP regarded as bank with Midas touch in Turkey
Monday, February 21, 2005, 00:00
Stock market quotes for Turkey?s Demizbank have been rising on market rumors of a planned acquisition by OTP Bank Rt, business news portal portfolio.hu reported. Portfolio regarded the information as unlikely to be true, however it called readers? attention to the noteworthy fact that even an assumed connection with OTP could result in the appreciation of a bank?s stocks. Raiffeisen Bank Rt analyst Kornél Sarkadi Szabó told BBJ Online that he had also heard the rumors but these had not been confirmed by sources close to OTP. ?An acquisition by OTP usually does not create value in itself, but it may still result in appreciation,? Sarkadi commented. ?OTP has been expanding in former Communist countries, markets in which it has experience. ?Bulgaria?s DSK Bank fits into OTP?s strategy perfectly, the Serbian and Croatian markets not so much as they are more developed,? he added. In Sarkadi?s opinion, risks in the Turkish market are too high, the geographic distance is too great and the price OTP would have to pay for the acquisition is questionable.