Tinkoff stops purchase talks with Yandex, to develop independently

MOSCOW, Oct 16 (PRIME) -- Tinkoff Group has terminated acquisition negotiations with Internet company Yandex and will develop independently, it said on Friday.

“After further discussion, including with Tinkoff’s controlling shareholder, the parties agreed to discontinue the potential deal. Thus, the negotiations between the parties on the potential deal were stopped immediately,” the group said.

Yandex’s shares went down 2.05% to 4,657 rubles on the Moscow Exchange as of 12.11 p.m. local time.

Tinkoff and Yandex said earlier that they agreed the U.S. $5.48 billion acquisition in general, but warned that there was no certainty in the deal.

Media reported earlier that Oleg Tinkov was considering other options, including an acquisition by mobile operator MTS or its unit, MTS Bank.

“We’re not holding negotiations with anyone, Tinkoff will develop further independently,” a group spokesperson told PRIME.

Yandex said in a statement that it “confirms with regret that it has not been able to agree clear transaction terms with Tinkoff’s core shareholders and accordingly that the parties have mutually agreed to terminate discussions of a possible offer by Yandex for 100% of the share capital of Tinkoff”.

The Internet company confirmed that it does not intend to make an offer for Tinkoff.

 (77.9461 rubles – U.S. $1)

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