UPDATE 2: Yandex’ cap loses 90 bln rbl on Sberbank acquisition rumors

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MOSCOW/SOCHI, Oct 19 (PRIME) -- Capitalization of Russian Internet company Yandex tumbled by almost 90 billion rubles within two days in the wake of media reports on a possible sale of up to 30% of the company to the country’s biggest bank Sberbank, PRIME said on Friday.

Yandex’s common shares have lost 10% to 2,011.5 rubles, the lowest since April. Sberbank’s shares were down 1.4% and the MOEX Russia Index sagged 0.6% as of 1 p.m. Moscow time.

By 5 p.m. Moscow time, common shares of the Internet company tumbled 15.91% to 1,879.5 rubles, and common shares of Sberbank lost 1.36%. The MOEX Russia Index went down 0.38%.

Yandex’s market capitalization has seen a maximum loss of 112.3 billion rubles during the day.

BCS Broker analyst Vasily Karpunin said market participants disliked the possible entrance of the state bank in the capital of the IT company despite Sberbank’s denial of the information.

Aton analysts said the state bank controlling Yandex is not a promising prospect.

Valery Lyakh, head of the central bank’s department for resistance to unfair practices, said the regulator analyses cases of extraordinary market fluctuations every time.

“If the central bank reveals unusual market fluctuations, we start a research of what has happened in each case, and if there are enough signs of the artificial nature of such pricing, we check for possible manipulation of the market or an illegal use of insider information,” he said.

The check takes up to 80 months, but periods vary depending on conditions, including involvement of foreign regulators, Lyakh said.

(65.7238 rubles – U.S. $1)

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