REFILE-Spain's 'bad bank' turns down three investment funds-report

Sat Feb 9, 2013 10:48am EST

MADRID Feb 9 (Reuters) - Spain's so-called 'bad bank', Sareb, has rejected overtures from investment funds Cerebrus, Fortress and Centerbridge to enter into its capital because they were asking for advantages over other shareholders, Expansion newspaper reported on Saturday without citing sources.

Sareb was not available for comment. None of the three funds could be reached for comment and neither the Bank of Spain nor the Economy Minister could confirm the report.

Spain set up the bad bank to hive off rotten real estate assets dating from a property crash from lenders' balance sheets as a condition of receiving around 40 billion euros ($54 billion) of European money to bail out ailing banks.

The head of Sareb, Belen Romana, sent a letter to the three funds on Friday declining their entry into the bad bank's capital, but leaving the door open for further talks, the paper reported.

The funds wanted first choice on buying portfolios of finished buildings and on supplying services to the bad bank, the paper said.

Sareb took on 37 billion euros worth of troubled real estate assets at the end of December from four nationalised banks, including Bankia

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.