* Sabadell follows Santander as bad bank investor
* BBVA still considering investment
* Private investors have until end-Dec to get on board
By Jesús Aguado
MADRID, Nov 30 Spain's fifth-biggest bank
Sabadell said it intended to become a shareholder in
Spain's bad bank, created to siphon off bad property assets from
lenders as a condition of receiving European aid.
"We will definitely hold an equity stake in the bad bank,"
Chairman Josep Oliu said on Friday.
Sabadell is the latest healthy Spanish listed bank to show
it is willing to support the entity created to clean up the
aftermath of a 2008 property crash after Santander said
earlier this month it intended to invest in the bad bank.
Spain's second-biggest bank BBVA is still
considering whether to make an investment, a company spokesman
said on Friday.
Government sources have said the bad bank, which technically
launches on Friday, could go ahead with backing from domestic
investors alone, but foreign investors would give it
The reaction of private investors, both domestic and
international, to the bad bank has been positive, the Economy
Ministry said in a statement on Friday.
The bad bank is now ready to begin receiving 45 billion
euros in soured real estate assets from the four nationalised
lenders, though these are unlikely to be transferred until the
end of December. The equity part of the bad bank will initially
be around 3.5 billion to 3.9 billion euros.
Private investors also have until the end of December to
invest in the equity.
In a second stage, after including the assets of a further
group of lenders in need of public aid, the total assets could
increase to 60 billion euros.
The equity portion will swell to 5 billion euros and the
government hopes international investors will buy up to 10
percent or 500 million euros of this.
International investors will have until the end of March to
invest in the bad bank, bankers say.