Bankia hires Rothschild for stake sale
Madrid, February 16, 2013
Bailed-out Spanish lender Bankia has hired Rothschild to help sell its stakes in companies, including power group Iberdrola and insurer Mapfre, as the bank rebuilds its capital.
Bankia, which along with parent group BFA took 18 billion euros ($24bn) of European Union aid last year, has to shrink its business as a condition of the rescue.
"We have hired Rothschild for certain disposals," a spokesman for Bankia said yesterday.
Bankia, which is controlled by the government through BFA, has said it hopes to raise about 8 billion euros by selling its stakes in Spanish listed and private companies.
The bank owns 12 per cent of International Airlines Group, the company that combines UK airline British Airways and Spain's Iberia.
It also has 20 per cent of technology group Indra, 27 per cent of insurer Realia, nearly 16 per cent of hotel group NH Hoteles, 5.3 per cent of Iberdrola and 15 per cent of Mapfre.
Bankia, which has forecast losses of 19 billion euros for 2012, said earlier it would likely make provisions against losses on its company holdings of 4.3 billion euros. The bank revalued the holdings on its books to mark them down to market prices. – TradeArabia News Service