The Bank of Portugal is due on Wednesday to announce the winner, if any, of the tender to buy Novo Banco, the bank that inherited the healthy assets of the bankrupt Banco Espírito Santo, according to the Portuguese press.
Financial daily Jornal de Negocios reported that China Minsheng Investment had lost out for not submitting the necessary guarantees in due time, and Novo Banco is now being disputed by the Apollo/Centerbridge consortium and US fund Lone Star.
The date for announcing the winner is based on the fact that the validity of the Lone Star fund proposal ends precisely today, 4 January, with the Bank of Portugal making a decision on who will buy the bank, and it is possible the central bank will not accept any of the proposals.
The Portuguese press reported that Lone Star had made a proposal of 750 million euros to buy 100% of the bank, which would be followed by a fresh investment in the same amount.
The resolution of Banco Espírito Santo cost 4.9 billion euros, 3.9 billion of which was provided by the Resolution Fund and the difference was provided by the financial system. (macauhub)