GoldenTree to raise BAWAG stake to 40 pct -source

VIENNA Mon Nov 19, 2012 9:36am EST

VIENNA Nov 19 (Reuters) - U.S. hedge fund GoldenTree wants to raise its stake in Austrian lender Bawag to about 40 percent from about 10 percent, a source familiar with the situation said on Monday.

The move would give GoldenTree a controlling stake in Bawag, which needs capital to shore up its balance sheet, together with current owner Cerberus Capital Management.

Austria's BWB competition authority said GoldenTree had informed it of its intention to buy a "significant" stake in Bawag and it would decide whether to approve it by Dec. 14.

GoldenTree has already acquired about 10 percent of Bawag by converting debt into equity.

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