Italy's Generali eyes 1pct of Russia's VTB

Italy's Assicurazioni Generali SpA, Europe's third-biggest insurer, is interested in buying up to 1 per cent in Russia's No 2 bank VTB, a source close to the issue told Reuters on Monday. Russia begins a roadshow on Monday to sell a 10 per cent stake in the state-owned lender. The sale is the first major development in a $33 billion three-year privatisation drive.

"Generali has expressed an interest in buying a maximum 1 per cent stake," the source told Reuters, adding that this would entail an investment of around $300 million. VTB is worth around $36bn on the market, according to Reuters data. Russia's Vedomosti business daily reported on Monday that Generali, which already has a very active presence in central and eastern Europe, would buy less than 5 per cent in VTB. VTB is looking to sell the 10 per cent state-owned stake via a secondary share placement rather than directly to a TPG-led consortium, as previously planned, sources told Reuters this month.