June 20, 2019 / 4:13 PM / 4 months ago

UPDATE 1-Spain's FROB says it could consider offer to sell stake in Bankia in medium term

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MADRID, June 20 (Reuters) - The head of Spain’s bank bailout fund (FROB) on Thursday said the fund could at a later date consider potential offers from other lenders to sell its stake in lender Bankia but added that the option was not currently on the table.

“We could study these kind of transactions to see if it generates value ... in a (potential) divestment strategy in the medium and long term,” Jaime Ponce told journalists in Santander after he was asked about a potential merger between Banco Sabadell and Bankia.

Ponce also said current market conditions were not adequate to sell further stakes in Bankia, of which the state holds a 61.4 percent stake.

The state has until 2021 to offload the stake.

On Wednesday, Bankia chairman Jose Ignacio Goirigolzarri said, in a response to question on a potential merger with Sabadell, that nothing was on the table but that he could not predict what would happen in the future.

In March, Sabadell chairman Josep Oliu did not rule out a deal with Bankia. (Reporting by Joan Faus; writing by Jesús Aguado; editing by Ingrid Melander)

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