Spain’s Savings Banks Seek Hedge Fund, Investor Capital, FT Says

Hedge funds and private equity firms including Paulson & Co., Cerberus Capital Management LP and Apax Partners LLP have held talks with Spanish savings banks which are seeking to raise 15 billion euros ($21 billion) in new capital and avoid a state bailout, the Financial Times reported, citing unnamed bankers and investors.

The firms have held talks with banks including Bankia and Banca Civica, the newspaper said. The low valuations placed on the banks by the investors have caused the process to stall, the FT said.