The conflict over control of Bank of Moscow between its management and Russia's second largest bank VTB took a a new turn on Monday after the bank's board of directors planned to fire its Chairman and VTB head Andrei Kostin, a source close to a board member said.
"The board is considering the possibility of replacing the chairman of the board of directors in the nearest future," the source told RIA Novosti.
Bank of Moscow said in a statement on Monday that its management board had relieved board member and VTB First Deputy Chairman Mikhail Kuzovlev of his position on Friday. VTB said in a statement Kostin was unaware of the board meeting and did not sign documents to sack Kuzovlev.
"If it becomes known that the necessary procedures were violated and Bank of Moscow's management has in fact committed a forgery and the board of directors' decision was falsified when the decision to remove Kuzovlev was taken, I reserve the right to turn to the Prosecutor's Office," Kostin said in the statement.
State-controlled VTB started its acquisition of Bank of Moscow, the capital's investment vehicle, in February, soon after former Mayor Yury Luzkov was fired by President Dmitry Medvedev. The new Moscow government, headed by Sergei Sobyanin, sold 46.48% of the bank and a quarter of Stolichnaya insurance firm, which owns 17.32% of Bank of Moscow shares, to VTB. VTB plans to eventually acquire 100% of Bank of Moscow but does not have control yet, a VTB official said.
Kostin was also elected as Bank of Moscow's chairman and VTB First Deputy CEO Mikhail Kuzovlev as first deputy chairman in March.
Currently, 15 seats on the Bank of Moscow board are held by President Andrei Borodin, his business partner Lev Alaluyev, the bank's two first deputy presidents, five VTB representatives and two seats are held by Moscow government officials.
Adviser to Moscow's Cornet Champagne Factory CEO Sergei Nikitin, lawyer Alexei Sterlikov, Stolichnaya's President Alexander Sudakov and Finance University Professor Mikhail Tsarev are independent directors.
Borodin and Alaluyev are Bank of Moscow's largest minority shareholders with a 20.32% stake.
MOSCOW, March 28 (RIA Novosti)
