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Economics ministry wants to postpone Sberbank share issue discussions

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TULA, November 28 (RIA Novosti) - Russia's economics ministry will propose at Tuesday's session of the supervisory board of state-controlled Sberbank [RTS: SBER] postponing discussions on a public share issue, the minister said Tuesday.

The savings bank recently announced plans for a substantial capital increase through a public share offering in the first quarter of 2007, expected to yield $6-8.5 billion.

"We will propose postponing the consideration, and will not to make a decision today," German Gref said.

The minister said the share issue plans have been approved, and the volume suggested seems satisfactory. But he said the procedure for issuing the shares needs to be finalized, which may take two or three weeks.

The supervisory board of Russia's largest bank comprises 11 state representatives, including three government officials, three Sberbank managers, and three minority shareholders.

The Central Bank controls over 60% of Sberbank shares. Sberbank entered the FT Global 500 for the first time in 2006, taking 232nd place, with a capitalization of $29.2 billion.

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