UPDATE 1-Russia's Sberbank eyes Dresdner unit among options

(Adds details, background)

By Dmitry Sergeyev

MOSCOW, April 10 (Reuters) - Sberbank (SBER03.MM: Quote, Profile, Research), Russia's largest bank, is considering Dresdner Bank's investment banking business among several acquisition targets or may opt to expand organically, a source close to the bank said on Thursday. State-controlled Sberbank, sheltered from the financial woes affecting global peers by its lack of collateralised debt obligations, is planning to expand into 20 countries within five years and views the current market as ripe for acquisitions.

"It is not only Dresdner. There are other candidates, but I won't name them," the source said on condition of anonymity.

"The market is in such shape today that you can buy a good asset at a not very high price."

The comments followed a report by Interfax news agency which quoted unnamed sources as saying Sberbank wants to buy Dresdner's corporate and investment banking activities, known as Dresdner Kleinwort.

Dresdner is part of German insurer Allianz (ALVG.DE: Quote, Profile, Research), which declined to comment on the report on Thursday.

Allianz has previously played down market speculation that it may sell either Dresdner Bank or Dresdner Kleinwort.

Allianz shares recovered from being down to close up 0.8 percent at 130.32 euros after the report, outperforming a 0.25 percent fall in Germany's benchmark DAX index .GDAXI.