BBVA holds international business negotiations with Turkish bank
Spanish bank confirms talks with Garanti Bank
Spanish bank BBVA has confirmed it has held international business negotiations with Turkish firm Garanti Bank.
According to Turkish daily newspaper Milliyet, BBVA is prepared to pay between $4.5 billion (£2.85 billion) and $5 billion for a 21 per cent stake in Garanti.
The share has been put up for sale by General Electric (GE), who has been looking to offload the stake since February but its search for a buyer has been hit by the impact of the economic downturn.
A source has told the Dow Jones Newswires that BBVA has asked shareholder Dogus Holding AS, which owns 30.5 per cent of the Turkish bank, if it will eventually be able to take over Garanit following the purchase of a minority stake.
The two sides have reportedly held negotiations intermittently over the year, with talks breaking down in the spring before they were resumed a few weeks ago.