The Banco, ...
Thanks to the shitty market, and news out, WIE sold off again and closed $1.
So, Wednesday's news were "red" while the result of the negotiationes was indeed positive, in that WIE does not get a stake of 10, but 35% of the new entity.
Also, the capital injection has been increased to $181M up from $130M.
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Wednesday June 9, 4:32 pm Eastern Time
Peru's Wiese said cutting stake in banking merger
LIMA, June 9 (Reuters) - Banco Wiese , Peru's second biggest bank, will cut its stake in the country's biggest ever financial merger because of its worsening overdue loan portfolio, a top banking industry official familiar with the negotiations said Wednesday.
Wiese (NYSE:BWP - news) was originally due to take a 47 percent stake in a merger agreed to in February with Banco de Lima Sudameris , Peru's fifth-largest bank controlled by a leading Italian bank,
Banca Commerciale Italiana .
''I would say the (stake) will be around 35 percent. The reduction is clearly due to the deterioration in the bank's and the financial system's overdue loans,'' the official told Reuters, adding the merger deal should be finalized in June to form an institution called Banco Wiese-Sudameris.
Banco de Lima Sudameris may also increase its capital injection into the newly merged bank from the originally planned $130 million, according to the source.
Peru banking system has found the proportion of overdue loans growing sharply over the last year. El Nino weather in the first half of 1998 and then an international financial crisis that threatened to engulf Latin America saw an increased number of clients struggling to pay off loans.
Banco Wiese's overdue loans have jumped to 13.75 percent of its loan portfolio in April -- higher than the banking system's average of 10.33 percent -- compared with 7.64 percent of the bank's portfolio at the end of 1998, according to banking superintendency figures.
In Lima, Wiese's stock was trading mid-session 7.22 percent lower at 0.90 sol in volume of 2.25 million shares while itsAmerican Depositary Receipts were down 5.26 percent at 1-1/8 in mid-session trading on the New York Stock Exchange.
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There goes... |
