Wednesday, January 4, 2017

The Lone Star favorite in the race to the New Database – TVI24

The u.s. fund Lone Star is the favorite in the race to the New Database. The Bank of Portugal (BdP) issued on Wednesday evening, a statement, where he considers the fund as the entity best placed "to finish with success the negotiating process leading to the acquisition of the shares of the New Bank and decided to invite you to a deepening of the negotiations".

The stability of the financial system and the strengthening of confidence in the future of the New Bank are the objectives of the process of sale that the Bank of Portugal is in the lead. At the current time of the negotiation, the proposal from the potential investor Lone Star is the one that best ensures these goals, but presents constraints, including a potential impact on public accounts, which seek to minimize or remove in the deepening of the negotiations that now if you start", adds the Bank of Portugal.

The BdP stresses that the new phase of negotiations "does not exclude the improvement of the proposals of the other potential investors who submitted proposals under the two sale procedures".

as Far as we know, the Lone Star offers 750 million for 100% of the capital joined over 750 million to inject in the institution. In addition, the fund admits to create an entity parallel to park the troubled assets of the bank, offers to manage the risk and work with the state in the eventual recovery of the capital.

The proposal have a drawback: the rumors say that the Lone Star demanded a state guarantee of more than 2 billion euros.

The Government wants to make it clear that interested parties do not have the knife and cheese in hand, and that in the final analysis, prefers to nationalize the bank to sell it at any cost.

For behind it were the chinese Minsheng, that even though they have the best offer from a financial point of view, could not gather the bank guarantees to close the deal.

In the race were also the BCP, the BPI and the consortium, the north-american Apollo-Centerbridge, whose offer was never made public. The summit of this consortium was this week in Portugal to improve the offer and even proposed to integrate the group of Portuguese Violas Ferreira, but the effort made in the last hour was not enough.

The Lone Star is a fund not quoted that invests primarily in the real estate segment. Operates mainly in the United States and Canada, but has returned in recent years to the european market. Manages assets in the amount of 50 billion euro.

This is not the first business of the Lone Star in Portugal. The group has already held four shopping centres in the network Dolce Vita and bought the marina of Vilamoura.

The last word on the winner in the sale of the New Bank, it is now up to the Government. The in-depth negotiations with the chosen will continue. The business must be closed until August 2017.

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