Spain's "bad bank" rebuffs three investment funds
7
Click here to load reader
Transcript of Spain's "bad bank" rebuffs three investment funds
An Abney Associates Blog
(Reuters) - Spain's so-called 'bad bank', Sareb, has rejected overtures from investment funds Cerebrus, Fortress and Centerbridge to enter into its capital because they were asking for advantages over other shareholders, a source with knowledge of the matter said on Saturday.
Sareb declined to comment. None of the three funds could be reached for comment and neither the Bank of Spain nor the Economy Minister could confirm the matter.
Spain set up the bad bank to hive offrotten real estate assets dating from aproperty crash from lenders' balancesheets as a condition of receiving around40 billion euros ($54 billion) of Europeanmoney to bail out ailing banks.
The head of Sareb, Belen Romana, sent aletter to the three funds on Friday decliningtheir entry into the bad bank's capital, butleaving the door open for further talks,Expansion newspaper reported on Saturday.
The funds wanted first choice on buyingportfolios of finished buildings and onsupplying services to the bad bank, thepaper said.
Sareb took on 37 billion euros worth of troubled real estate assets at the end of December from four nationalized banks, including Bankia (BKIA.MC)
