By Balazs Koranyi
VIENNA (Reuters) - OTP Bank OTPB.BU, one of the biggest listed firms in Central Europe, said the recent credit crunch could cost it more to borrow but may also create good takeover opportunities as others struggle with financing.
OTP, which finished an acquisition spree worth over $1 billion in 2006, is having difficulty with some new units, particularly Serbia and Russia, Chief Financial Officer Laszlo Urban told the Reuters Central European Investment Summit.
But any deviation from its 211.6 billion forint ($1.21 billion) profit target this year would be small.
"There is margin of error everywhere and the margin of error is 2 percent on annual profit," Urban told the Reuters Central European Investment Summit.
"Any underperformance will be within that margin of error... (and) if we were to miss by 2 percent, that shouldn't justify significant (forecast) revisions."
Urban said the Russian unit, which has a new management, made progress in the third quarter and could catch up to targets but Serbia, where OTP is merging three small banks, remains a problem.
In Russia, OTP is seeking a small regional bank with around 40 branches worth around $50 million and a deal may be announced as early as this year although financial closing will certainly slip into 2008, Urban said.
OTP acquired units in Russia, Ukraine, Serbia and Montenegro in 2006 and has spent most of 2007 integrating the new subsidiaries. Continued...
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