* Spanish banks expected to bid-sources
* BB&T, PNC, TD also expected to bid-sources
* Valuation expected to be $600-$800 million-sources
By Jessica Toonkel and Jesús Aguado
NEW YORK, March 6 North American and Spanish
banks are lining up to bid on City National Bank of Florida over
the next few days, according to sources familiar with the
Banks that are expecting to bid include Canadian bank TD
Bank, Winston-Salem, North Carolina-based BB&T Corp
, Pittsburgh-based PNC Financial Services Group
as well as Spanish banks Banco Sabadell and Banco
City National's parent, rescued Spanish lender Bankia
, announced it was selling the Miami-based bank last
year as part its restructuring effort. The bank has hired
Goldman Sachs to sell the bank, said four sources familiar with
the situation, who declined to be identified because they are
not allowed to speak to the media.
Goldman is asking for between $900 million and $1 billion
for the bank, the four sources said. Sources, however estimate
the bank will go for closer to $600 million to $800 million.
City National has $4.8 billion in assets, according to the
bank's Web site.
"It is a nice, little property to have, but it is not a
must-have for anybody and given the current regulatory
environment people are interested in having a look but I don't
see them stretching too much to do this," said one of the
Bids are due March 11, the sources said.
Goldman Sachs, Sabadell, Popular, Bankia, BB&T, PNC and TD
declined to comment.
Last week Bankia Chief Executive Jose Ignacio Goirigolzarri
said he has a dozen non-binding bidders and expects to close the
sale of City National by the second or third quarter of this
Caja Madrid, one of the seven regional savings bank which
joined to form Bankia in 2010, paid $927 million when it bought
a 83 percent stake in CNB in 2008. It bought the remaining stake
at a later date, without disclosing the price.
But last year, Bankia requested 18 billion euros in European
aid last year to cope with a property market crash and to
rebuild its capital. It has to shrink drastically as a condition
of that aid, and it's slashing 4,500 jobs as well as closing
bank branches in Spain. It will also sell its stakes in various
Spanish companies between now and 2017, and is exiting
non-strategic businesses, which include its operations in
The sale of its Florida bank would be the first major
disposal by Bankia.