This is a story of the “Sun”: Banco Espirito Santo de Investimento (BESI) will be sold for 400 million euros. The seller is the New Bank, and the buyer is a Chinese group, for as yet unidentified.
The figures are interesting. Get € 400 million by a company which lost in the first nine months of this year, EUR 15 million, and whose share capital amounted to EUR 490 million in the same period, was undoubtedly a good deal for vendors.
And note also that the new administration of the New Bank, led by Stock da Cunha, is working quickly, possibly by implementing a strategy that was responsible.
Already about the strategy followed to dismember the New Bank to sell for parts, I have more doubts. The retail part of the BES, balconies, where contact with customers, the bank was now sold, BESI client. BESI functioned as the brain of the group, supporting the strategic decisions, and creating financial products that were then sold to shops.
Without the functions that were in BESI designated as investment banking (as opposed to banking retail, we are the branches) the New Bank is an important part amputated. Ultimately, you have to become a customer of other banks (or even “Chinese” BESI) for functions that were concentrated in BESI because it can not do without them.
Therefore, I doubt that the two banks, retail and investment separate, worth more than together. Together, they made a strong banking group. Every man for himself, lose synergies between their activities.
Sell BESI now makes sense only in the event the buyer of the New Bank already have a strong presence in investment banking. But as nothing is said about the negotiations, we can not know if this is the case
One last note:. President of Banco Santander Totta, António Vieira Monteiro, came today to say that it is difficult for the New Bank worth the € 4,900 million that was lent to her rescue.
The bank prepares to take losses due to loan the New Bank. Customers possibly endure higher costs to pay for the cost of the loan.
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