Portuguese bank Novo Banco attracts 7 non-binding bids

Portugal bank Novo Banco which emerged from the break-up of beleaguered bank Banco Espirito Santo, has received seven non-binding bids, the Bank of Portugal revealed on Tuesday.

Governor of Bank of Portugal Carlos Costa said at a parliamentary hearing in Lisbon that the central bank was now "analyzing" the proposals.

"The process has developed in a transparent fashion," he said, adding that the sale should be completed by summer.

Costa didn't reveal the names of the bidders, however China's Fosun Group formalized its interest in acquiring Novo Banco in December and is willing to pay up to 3.5 billion euros (3.8 billion U.S. dollars) for Novo Banco, according to local media. Banks BPI and Santander have also expressed interest in buying the bank.

Banco Espirito Santo was bailed out in August after a first-half net loss of 3.58 billion euros and the bank's former governor Ricardo Espirito Santo Silva Salgado was arrested for alleged tax fraud and money laundering. He was released after paying a 3-million-euro bail.

The bank was split into a "bad bank" which houses toxic assets and liabilities, and a "good" bank, named Novo Banco, which houses viable assets.

The Bank of Portugal recently revealed that 15 bidders for Novo Banco would pass on to the second phase of the sale. The bidders had until March 20 to present their non-binding proposals to Novo Banco.

The authorities are hoping that the eventual sale of Novo Banco will pay for the state's 4.9 -billion-euro bailout. Endit