LISBON May 27 Portugal's Espirito Santo
Financial Group will end up with a slightly smaller
stake in the country's largest listed bank BES of 25
percent after an ongoing rights issue in the lender, ESFG said
"ESFG which now holds 27.4 percent of BES capital has
decided to exercise its subscription rights in the offering of
new shares that allows it to hold about 25 percent of BES
capital" after the capital increase, it said in a statement.
The group, which is the largest shareholder in BES, also
posted a first-quarter net loss of 37 million euros after a loss
of 13 million euros a year ago.
The bank last week warned that the holding company Espirito
Santo International, which owns ESFG, is in a serious financial
situation. ESI plans to sell assets and carry out a capital
increase in one or more of the companies it owns to correct the
(Reporting By Andrei Khalip)