LISBON (Reuters) -U.S. private equity fund Lone Star has decided to sell its 75% stake in Novo Banco to French banking group BPCE in a deal that would value Portugal's fourth-largest lender at around
Lone Star Sells 75% Stake in Novo Banco to French BPCE Group
LISBON (Reuters) -U.S. private equity fund Lone Star has decided to sell its 75% stake in Novo Banco to French banking group BPCE in a deal that would value Portugal's fourth-largest lender at around 7 billion euros ($8.14 billion), Portuguese economic news outlet ECO said on Thursday.
ECO said the "decision has been taken" and should be communicated to the market later on Thursday.
With this decision, Lone Star is abandoning the option of Novo Banco making an initial public offering that was advocated by Novo Banco management.
The Portuguese state and a banking resolution fund, which is financed by Portugal's banks, control the remaining 25% stake and enjoy a tag-along clause that allows them to sell on the same terms as Lone Star.
In Portugal, BPCE has only a small consumer credit operation and its subsidiary Natixis has a technology centre focused on IT services and support for the group's banking activities.
($1 = 0.8600 euros)
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
