Russian bank thinks it gains prestige by selling 2% to MorganChase

Section:

It may be the camel's nose under the tent, except that the camel smells better.

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JPMorgan Buys 2% of Bank of Moscow

From Reuters
Monday, August 21, 2006

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reut...

MOSCOW -- JPMorgan said on Monday it had bought a 2 percent stake in Bank of Moscow, Russia's fourth-largest bank by assets, in an investment it had flagged in June.

JPMorgan said in a statement it had bought the stake as a financial investment following a capital increase by Bank of Moscow registered by the Russian central bank last week.

Bank of Moscow, controlled by the city government, raised 2.9 billion roubles ($108.6 million) by offering 5.6 million new shares at 519 roubles apiece.

Existing shareholders took up just 13.5 percent of the offering.

Bank of Moscow President Andrei Borodin has said the sale of a small stake to a foreign investor would boost its reputation.

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