December 17, 2014 / 9:37 AM / 3 years ago

Banco BPI to express interest for Novo Banco

LISBON, Dec 17 (Reuters) - Banco BPI, Portugal’s second-largest listed bank, is set to enter the first phase of buying Novo Banco, the bank carved out of Banco Espirito Santo (BES), which the government hopes to sell in coming months.

BPI’s board of directors has agreed to present an “expression of interest” in the sale of Novo Banco, BPI said in a statement late on Tuesday.

The Bank of Portugal has requested that potential buyers of Novo Banco express their interest by Dec. 31 and make binding offers by the middle of the second quarter of 2015.

Novo Banco was created as a ‘good bank’ after a 4.9-billion-euro rescue of BES, Portugal’s largest listed lender, in August. BES crumbled under the debts of the Espirito Santo family which founded the bank.

Shares in BPI were down 7 percent at 1.1610 euros at 0932 GMT.

Reporting by Axel Bugge; editing by Jason Neely

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