The Bank of Portugal has revealed that Lone Star, the American private equity fund that owns Vilamoura, will be invited for in depth discussions for the takeover of Portuguese bank Novo Banco.
In a statement issued this week the Bank of Portugal said Lone Star was the best positioned entity to assume control of Novo Banco what was formerly Banco Espírito Santo.
Banco Espirito Santo assets were split in two financial institutions “Bad Bank” and “Good Bank”.
Good Banco are assets that can be traded ,whereas Bad Banco are liabilities or the so called “toxic” financial products..
The Portuguese banking regulator added that the decision does not however preclude other groups from improving their offers to purchase Novo Banco.