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. Last Updated: 07/27/2016

Sberbank Will Offer No Discounts

Sberbank will give no discount to the market price at the secondary offering of its stock, the lender's CEO, Andrei Kazmin, said ahead of an offering that could raise over $8 billion.

"There will be no discount, as some analysts had suggested. We're not crazy," Kazmin told Kommersant on Wednesday. "In order for the bid to be accepted, one has to take the market price plus give some premium."

In the interview, Kazmin sought to quash market sentiment that the bank might offer a significant discount to its shareholders. Sberbank's shares have dropped almost 8 percent in the last two days because of this. Kazmin had earlier said the bank would consider bids of no less than 68,000 rubles ($2,563).

"I would say this is a technical minimum bid level. If we consider a similar situation, it is the price of an entry ticket to the auction hall," Kazmin said.

Also Wednesday, Prime Minister Mikhail Fradkov approved a reduction of the Central Bank's stake in Sberbank to no less 55.34 percent, the Cabinet's web site said Wednesday. The Central Bank currently holds over 60 percent of Sberbank's ordinary shares.