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Seizure of 27.6% of shares in Estonian bank extended, Bank of Moscow says

14:35 06/10/2011

MOSCOW, October 6 - RAPSI. An Estonian court extended on Thursday until late October the seizure of 27.57 percent of the shares in the Estonian Credit Bank (ECB), Bank of Moscow chief Mikhail Kuzovlev told journalists in the lobby of the VTB investment forum "RUSSIA CALLING!".

The ECB has been operating in Estonia since 1992.

The Bank of Moscow, which changed its owner this year, maintains that the sale of 10.748 million shares in ECB was unauthorized. The transaction was conducted by former Bank of Moscow head Andrei Borodin, who under ECB documents was fully authorized to make such deals at his own discretion. The transaction was reported to be closed on March 24.

Borodin argued that the transaction was agreed upon with VTB chief Andrei Kostin.

The sale reduced the Bank of Moscow's interest in ECB from 43.79 to 16.22 percent.

In mid-July, the Harju District Court in Estonia seized at the Moscow bank's request 27.57 percent of ECB shares on the accounts of Olix Holdings Limited, Lazuron Investments Limited, Firmex Investeeringud OU and Genovia Invest OU.

"The seizure has been extended until the end of October," Kuzivlev said, adding that talks are underway to resolve the issue.

The new Bank of Moscow management believes that ECB shares cost more than the price at which Borodin sold them. The Bank of Moscow received from the sale 7.95 million euro, meaning the buyer paid 0.74 euro per share.

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Seizure of 27.6% of shares in Estonian bank extended, Bank of Moscow says

14:35 06/10/2011 An Estonian court extended on Thursday until late October the seizure of 27.57 percent of the shares in the Estonian Credit Bank (ECB).
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