Brazil Banespa sale risks delay until 2002
Reuters, 07/10/2000 19:33
RIO DE JANEIRO, July 10 (Reuters) - A senior Brazilian Central Bank official said Monday the sale of state bank Banespa (SAO:BESP4) risks being delayed until 2002 if the country's courts do not overturn two injunctions against the sale before September.
The sale of the bank is slated for July 18 but even government officials have recognized the long-delayed sale will in no way get off the ground on that day.
The so-called superior justice tribunal, which is the highest court in Brazil for nonconstitutional matters, is currently evaluating the two injunctions brought by a bankers unions.
"We need at least 60 days to carry out the sale," Central Bank Director Eduardo de Freitas said.
Banespa, the oldest and largest public state bank, is the only large retail bank up for sale in Brazil right now, making it a highly coveted asset for foreigners wanting to raise their stakes in Brazil or for domestic banks in their race to expand.
Freitas warned that if a legal decision does not come before September, the bank sale risks being delayed all the way to 2002 because a new evaluation of the bank's accounts would have to be carried out.
The last evaluation of the bank's accounts, carried out last year, is only valid until the end of this year, the official said.
Five foreign and four domestic banks have pre-qualified to bid in the auction for Banespa.
The foreign banks are BSCH (MADRID:SCH) and BBVA (MADRID:BBVA) of Spain, Britain's HSBC (ISEL:HSBA) and U.S. banks Citibank (NYSE:C) and BankBoston (NYSE:FBF).
The domestic banks are the country's three largest private banks -- Bradesco (SAO:BBDC4), Itau (SAO:ITAU4) and Unibanco (SAO:UBBR4) -- and Banco Safra.
Copyright 2000, Reuters News Service |
