LISBON Aug 3 Troubled Portuguese lender Banco
Espirito Santo is expected to be split up into a "bad" and
"good" bank under a multi-billion euro state rescue plan being
hashed out by Lisbon and EU authorities, people familiar with
the talks said on Sunday.
The plan, aimed at saving a bank that has been engulfed by
the dramatic fall of the Espirito Santo family's business
empire, includes using at least half of the 6 billion euros left
from Portugal's recently exited international bailout programme,
these sources said.
The bailout money will be used to finance a special bank
resolution fund set up by Portugal in 2012 that will in turn
inject money into the new Banco Espirito Santo, or BES, "good
bank", these people said.
BES shares would be delisted under the plan, with
shareholders likely to lose their investment, they added.
One source said the injection could be of at least 4 billion
euros. It was not clear how the bad bank would be handled.
(Writing By Andrei Khalip; Editing by Alessandra Galloni and