is close toacquiring a 49% stake in Russian insurer VSK, Interfax reported April 6, citinga source from the insurance market.

The valueof the deal, which could be closed April 10, amounts to 7 billion Russianrubles, and the insurer's current shareholders will retain a controlling stakein the company, according to the report.

Aftercompletion of the transaction, three or four B&N Bank representatives willjoin VSK's board of directors, but the insurer's beneficiary owner, SergeyTsikalyuk, will remain chairman for the time being.

Theacquisition of VSK could help B&N Bank to develop insurance business, asits own insurance company, B&N-strakhovanie, failed to take a leadingposition on the market, Interfax noted, adding that the lender could also usethe insurer as a partner for its leasing business.

As of April 6, US$1 wasequivalent to 68.25 Russian rubles.