LISBON May 29 The biggest shareholder in
Portugal's largest listed bank said on Thursday there were
"material irregularities" at a holding company that has a large
stake in it and pledged sweeping corporate governance changes to
remedy the situation.
The statement came after growing concerns over the financial
situation of a holding company of Portugal's Espirito Santo
family, which ultimately controls Banco Espirito Santo
Espirito Santo Financial Group said an audit of holding
company Espirito Santo International found that financial
irregularities affected the "completeness and trusworthiness" of
its accounting records.
The concerns started when BES released last week a
prospectus for a capital hike which listed "reputational risks"
connected to the selling to its clients of commercial paper
issued by Espirito Santo International.
(Reporting By Axel Bugge)