Sale of the New Bank decided after review of the offers – Jornal de Negócios – Portugal

The Bank of Portugal is awaiting the final review of bids for the purchase of the New Bank to decide who is going to buy the institution. The choice, the present by the end of the day Wednesday, it will be between Lone Star and a consortium Apollo/Centerbridge, a time that China Minsheng had not provided the financial guarantee required.

the Business took the favoritism assigned on the last day of the offer of the Lone Star, which began by being the second most interesting next to a candidate’s chinese, may be annulled by an improvement of the proposed north american rival. In the market, it is accepted that the alliance Apollo/Centerbidge will review their offering, equaling or exceeding the financial conditions of the other candidate comes from the United States. In the limit, the possibility of Holding the Violas Ferreira come to join that consortium – the assumption that the supervisor does not have formal knowledge – can make a difference, in the case of the Bank of Portugal to come to be confronted with two proposals are financially equivalent.

it is Certain that the entity headed by Carlos Costa will have to make a decision about the winner of the race to the New Database until the end of Wednesday. Is that the validity of the proposal of the Lone Star ends on the 4th January, the day on which they spend 60 days on the delivery of the final tenders, the minimum period accepted by the Bank of Portugal.

Despite the pressure on the timing of the decision, the technical team responsible for the process, led by Sérgio Monteiro, has maintained contacts with the three candidates challenging them to one last effort for the improvement of their proposals. Diligence that, having reflected on the conditions of the offers on the table, may affect the final decision of the supervisor. Any choice of the BdP will also be conditional upon the approval of the Government.

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status of the proposals of the three finalists

the sale of The New Bank is on the straight end. The lack of guarantees chinese opened the way to a dispute between the two candidates for north americans.

the Chinese still have not given warranties

The proposal from China Minsheng was the most daunting financially, as it offered 750 million euros for a controlling position in the New Bank. However, the chinese group still had not provided the guarantees about your ability to honor your proposal as required by the Bank of Portugal. Formally, the Minsheng has not yet been eliminated from the race to the purchase of the bank led by António Ramalho. But, in practice, your offer is already off the radar.

the Lone Star Force quick decision

The Lone Star proposes to pay 750 million euros to stay with 100% of the New Bank, where it agrees to inject more 750 million in the case of come out the winner of the contest. Your proposal is only valid until 4 January, a position that requires a quick decision on the part of the Bank of Portugal. The offer assumes a state guarantee for a mechanism of an asset management problem that should ensure future revenue to the State. A solution that requires endorsement by the european authorities and the Government.

Apollo is to improve the proposal

The proposal of the consortium Apollo/Centerbridge gained interest with the output of game of China Minsheng. Although the first version of your final proposal to be the least interesting, there is the expectation that the u.s. funds will improve its financial offer. The possible entry of Portuguese partners can give new breath to the alliance of north american on top of the goal in the race by the New Bank.