Bid for Portugal’s Novo Banco Collapses
(2 September 2015 – Portugal) The Bank of Portugal said a multibillion-euro bid to buy Portuguese lender Novo Banco, has collapsed.
People familiar with the negotiations named three bidders, two Chinese companies, Anbang Insurance and Fosun International, and U.S. firm, Apollo Global Management.
Novo Banco was set up in August 2014 to salvage assets from the failed Banco Espirito Santo (BES), after a €4.9 billion (A$7.8 billion) state-led bailout.
The central bank said it would open discussions with the second highest bidder, believed to be Fosun International, with the third short listed bidder’s offer still “wholly valid”.
Following the collapse of BES, the Portuguese government put up most of the money to rescue the bank, but €1 billion came from other Portuguese banks, who will be repaid from the proceeds of the sell off.
Novo Banco reported a first half loss of almost €252 million on Monday, attributed to the cost of writing off interest payments from big corporate loans inherited from BES. Novo Banco also had to state provisions for the loss of value in some of its telecommunications holdings.
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