(Adds details, background)
By Carlos Ruano
MADRID Feb 5 Spain's bank restructuring fund
FROB is looking to hire at least one investment bank adviser
shortly to help it steer a privatisation strategy for bailed-out
lender Bankia, according to a FROB document seen by
Bankia's huge losses in 2012 made it a symbol of Spain's
financial crisis when it needed almost half of a 41.3
billion-euro ($56 billion) European bailout.
The bank, which returned to profit in 2013, said earlier
this week that the government was preparing to start selling its
68 percent stake. Sources told Reuters last
month the government was considering a partial sale as early as
the first quarter.
The FROB document, which listed the conditions under which
the appointments will be made, said advisers would also be
allowed to participate as bookrunners in the sale of part of the
state's Bankia holding.
Banks have until this Friday to pitch for the FROB mandate.
Some of Bankia's Spanish rivals, including Santander
and Banco Popular, have already said publicly
they would be keen to work on a share offering as bookrunners.
Bankia said on Monday that the privatisation would likely be
done in chunks and could take around two years, and that there
was no definitive plan yet for the first phase of the sale.
Spain's economy ministry and the FROB are keen to follow a
privatisation model used by Britain to sell part of the UK's
holding in part-nationalised bank Lloyds, sources
familiar with their thinking have said.
UK Financial Investments, which manages Britain's stakes in
rescued banks, sold 6 percent of its Lloyds holding in a share
sale last September and is expected to sell more of its stake
($1 = 0.7402 euros)
(Writing by Sarah White, editing by Tracy Rucinski and Jane