FOSUM and "NOVO BANCO" Negotiations Failed: Sale Postponed Until After Country's National Elections

Negotiations have failed between Novo Banco and its buyers Apollo, Anbang, and Fosun. Rumors seem to indicate Banco de Portugal to re-enter negotiations with Apollo before the final decision to postpone the sale to 2016. The last standing bid offer from the Chinese Fosun company was 1.5 billion Euros ($1.7 billion) that was about half the required original offer amount from Banco de Portugal. Banco de Portugal had previously stated there is no hurry in accepting low offers and is prepared to postpone the deal till after the country's next national elections. Novo Banco was created in August 2014 to rescue assets and liabilities from the debts of Banco Espírito Santo. The bank was held by a resolution fund by Portuguese banks with the Banco de Portugal supervision. In an interview to the Portuguese daily "Jornal de Negócios", the President of Millennium BCP, Nuno Amado, said that "the delay in Novo Banco sale may be positive" and "speeding up the sale is not a good idea." Millennium BCP is one of the banks holding the Novo Banco resolution fund.