Board of Spain's Deoleo backs CVC takeover bid

MADRID, April 10 Thu Apr 10, 2014 2:27pm EDT

MADRID, April 10 (Reuters) - The board of Spanish oil firm Deoleo agreed on Thursday to back a takeover offer put forward by British private equity fund CVC Capital Partners , the company said in a statement.

Deoleo said CVC would first buy a 29.99 percent stake in the firm and then launch a takeover bid for the remaining capital at a price of 0.38 euros per share. The deal will also involve the refinancing of Deoleo's debt, the company said.

A source with knowledge of the decision had earlier told Reuters that CVC's bid had been backed by the board but that only two Spanish banks out of the four that were mulling selling their stakes had eventually agreed to do so.

The two banks that decided to sell are nationalised lender Bankia and BMN, the source added. (Reporting by Julien Toyer; Editing by Anthony Barker)