Fosun offers olive branch to “the indignant” as likelihood of Novo Banco “Plan B” increases

Progress in the convoluted “sale” of Novo Banco is not looking any less tortuous this morning as Portuguese newspapers claim latest potential buyer Fosun is not in any way prepared to up its offer.

With huge losses now envisaged for the “good bank” that hoped to recoup the €4.9 billion ploughed into it, a Plan B – already suggested by Economico website yesterday – is looking increasingly likely (click here).

The irony, the site explains today, is that this is precisely the scenario mapped by Novo Banco’s sacked former CEO Vítor Bento.

Bento was given his marching orders a year ago because governor of the Bank of Portugal Carlos Costa did not feel he was preparing the bank for the desired quick sale fast enough.
“Troubleshooter” Eduardo Stock da Cunha was called in – apparently the man for the job – and things have deteriorated ever since.

Presenting losses of €468 million for the five months from August – December 2014, da Cunha has now released six-month figures for this year, showing losses of €252 million, so it is little wonder that Chinese conglomerate Fosun is described as refusing to pay any more for the beleaguered bank.

But it does appear to have made concessions over the thousands of the self/named “indignant” clamouring for the return of millions invested in commercial paper before the BES collapse that saw Novo Banco created.

National tabloid Correio da Manha reports this morning that Fosun is prepared to pay “around 80% of the more than 500 million” that is owing.

But whether it will ever get to this is dependent on negotiations that are expected to extend to the middle of September.

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