The largest domestic bank OTP announced that it submitted preliminary, non-binding bid for the acquisition of at least 99.43% stake in Serbia's Vojvodjanska banka. We recall that on Nov. 7, OTP file a letter of intent for participation in the privatization tender, while on Dec 19 Serbia's line authority, Deposit Insurance Agency, allowed it to participate in the next stage of the sale. We note that 11 international institutions are competing for Vojvodjanska banka, which is the last chance for significant presence on the Serbian market. The lender had a 5.8% share in the domestic market as of end-September 2005. It is the fifth largest in Serbia with €459.9 million in total assets.

The branch network of the bank is some 175 outlets serving 685,000 clients. We recall that OTP already acquired small-sized Niska banka, participates in the tender for medium-sized Panonska banka (also facing strong competition of nine other suitors) and last week filed a binding bid for 80% of small-sized Zepter banka. The indicative bid for Vojvodjanska carries no financial or other obligations for OTP.