Bradesco to write off $158 mln stake in Banco Espiríto Santo

SAO PAULO Mon Aug 4, 2014 12:54pm EDT

SAO PAULO Aug 4 (Reuters) - Banco Bradesco SA plans to write down its 356 million-reais ($158 million) stake in Portugal's Banco Espírito Santo SA, which the Portuguese government rescued over the weekend, the Brazilian bank said on Monday.

Bradesco, which owned 3.9 percent of Banco Espírito Santo, will take a charge equivalent to 100 percent of the investment in Espírito Santo on third-quarter earnings, Brazil's second largest non-government bank said in a statement.

Last week, Bradesco Chief Executive Officer Luiz Carlos Trabuco said his bank was not interested in participating in an eventual capital injection into Espírito Santo.

The Portuguese bank had struggled with a drop in confidence following news of its exposure to a cascade of bankrupt and highly indebted companies controlled by its founding Espírito Santo family.

Portugal's 4.9 billion-euro ($6.58 billion) rescue of Espírito Santo, the country's largest listed bank, was announced after a frenzied weekend of discussions between Portuguese and European Union officials. ($1 = 2.26 Brazilian reais) ($1 = 0.7450 Euros) (Reporting by Guillermo Parra-Bernal; Editing by Jonathan Oatis)

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