Telekom Srbija has made a formal offer for the majority of shares in the Danube Bank (Dunav Banke), according to sources close to the Dunav insurance company.

Kamatika reports that the Serbian incumbent wants to put itself on more of an equal footing with Telenor, which recently acquired KBC Bank and with it the green light to develop telephone banking.

It adds that this sector is not well developed in Serbia and the market would benefit by the entry of another player.

At the same time, Telekom Srbija would significantly increase its own value by buying the Danube Bank.

Telekom Srbija is likely to be privatised in the near future, with Deutsche Telekom seen as the most likely buyer.