* La Caixa to buy nationalised Banco de Valencia -sources
* Deal could be announced later Tuesday
(Adds details, background, share price)
MADRID Nov 27 Spain's third biggest bank La
Caixa will buy nationalised lender Banco de Valencia
, three sources close to the deal told Reuters on
La Caixa is one of the few Spanish lenders that emerged
sufficiently capitalised to resist a serious economic downturn
in an independent stress test published in September. The audit
showed Banco de Valencia needed 3.46 billion euros ($4.49
billion) in fresh capital.
The results of the test will be used to determine the amount
of EU funds Spain will tap from a 100 billion euro credit line
agreed in June. The final number, likely to be published on
Wednesday, is expected at around 43.5 billion euros.
"The FROB (Spain's bank restructuring fund) is studying the
offer (from La Caixa) and an announcement could be made as soon
as this afternoon," one of the sources said.
The other sources said the relevant information would soon
be sent to Spain's market regulator.
Both Banco de Valencia and La Caixa declined to comment on
Shares in La Caixa's listed arm CaixaBank were up 0.83
percent at around 1620 GMT, while shares in Banco de Valencia
were up 12.5 percent.
Banco de Valencia was tipped earlier this year by banking
and European sources as a clear candidate to be wound down as
part of the recapitalisation of Spain's financial sector with
Four banks, including Banco de Valencia, are currently
nationalised in Spain. Bankia, the largest of that
group, has presented a stand-alone plan, while two other
regional lenders NovaGalicia and CatalunyaCaixa are expected to
be sold at auction.
($1 = 0.7713 euros)
(Reporting by Carlos Ruano, Julien Toyer and Tomas Gonzalez;
Editing by Louise Heavens)