Sberbank Preferred Stock Falls as Gref Says No Conversion
Preferred shares of OAO Sberbank, Russia’s biggest lender, fell to a seven-month low after Interfax reported Chairman German Gref signaled the securities will not be converted into ordinary shares in the near future.
The stock retreated for a second day, losing 2 percent to 55.24 rubles by the close in Moscow, the lowest level since Oct. 11. Sberbank’s ordinary shares slid 0.8 percent to 78.15 rubles, the lowest level since Nov. 24.
The conversion of preferred shares into ordinary shares is not being considered right now, Gref said during the shareholder meeting on June 1, Interfax reported.
“The news is moderately negative for the preferred stock,” David Nangle, an analyst at Renaissance Capital, said in an e-mailed note today. “Last year, the prefs rallied following Gref’s comment at the 2011 annual general meeting that conversion was a possibility.”
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