Erste Bank and the Hungarian OTP submitted bids for the 100% stake in the state-owned DSK Bank of Bulgaria, Bloomberg reported yesterday (the Greek Piraeus Bank did not bid despite expectations). The bids were not disclosed. We estimate DSK Bank's fair value to range between EUR 190 mil.-207 mil. (for a 100% share without a majority premium); assuming a maximum premium of 25%, a reasonable final bid should not exceed EUR 259 mil.
The tender winner should be chosen today, and the contract should be signed in two weeks. DSK’s privatization is scheduled to be completed by the end of August.