The Bank of Portugal has chosen US company Lone Star Funds on an exclusive basis for the final phase of the negotiations to define the terms of sale of the Resolution Fund’s stake in Novo Banco, the central bank said in a statement.

In the running to buy Novo Banco, the bank that inherited the quality assets of the bankrupt Banco Espírito Santo (BES), was the Apollo/Centerbridge consortium, after finance company China Minsheng failed to provide the guarantees that were required by the Bank of Portugal.

This is the second attempt to sell Novo Banco, after a first failed because the Bank of Portugal considered the value of the submitted proposals was too low.

The Resolution Fund placed injected 4.9 billion euros in Novo Banco in August 2014, and losses from the sale of the financial institution for a price lower than that will have to be borne by the banks, through their contributions to the fund. (macauhub)