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Russia's Yandex and TCS terminate takeover talks for online bank Tinkoff

Credit: REUTERS/SHAMIL ZHUMATOV

Discussions over a $5.48 billion cash-and-shares sale of online bank Tinkoff to Russian internet giant Yandex have been terminated after they failed to agree transaction terms.

Adds detail, Yandex response

MOSCOW, Oct 16 (Reuters) - Discussions over a $5.48 billion cash-and-shares sale of online bank Tinkoff to Russian internet giant Yandex YNDX.O have been terminated after they failed to agree transaction terms.

Tinkoff's parent company TCS Group Holding TCSq.L said on Friday that it had agreed with Yandex YNDX.O not to proceed with the transaction but Tinkoff would continue to partner Yandex on current and future projects.

Yandex, meanwhile, expressed regret that it was unable to agree definitive transaction terms with Tinkoff's core shareholders.

The internet company said the parties had mutually agreed to terminate discussions regarding a possible offer for Tinkoff, which has more than 10 million customers across Russia.

TCS and Yandex had announced they were in talks on Sept. 22, a few months after Yandex said it was terminating its partnership with Sberbank SBER.MM.

Tinkoff now intends to develop independently, the Interfax news agency reported, citing a bank representative.

The termination of the deal hit Yandex shares, sending them 2.7% down to 4,628.2 roubles ($58.35), their weakest level since Sept. 22.

($1 = 78.1565 roubles)

(Reporting by Anton Kolodyazhnyy and Nadezhda Tsydenova Writing by Alexander Marrow and Andrey Ostroukh Editing by David Goodman)

((alexander.marrow@thomsonreuters.com; +7 495 775 1242;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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