Sale of Portugal’s Novo Banco Revives Fears of Spanish Dominance

Eight years after Portugal agreed to sell the remnants of what was once the country’s largest lender to Lone Star Funds, plans by the US investor to sell Novo Banco are reviving deep-seated fears in the country.

The bank, which was carved out from the breakup of Banco Espirito Santo SA more than a decade ago, said last week that it may go ahead with an initial public offering as early as June. But Lone Star, which owns 75%, is also considering a full sale of Novo Banco, with Spain’s CaixaBank SA among potential suitors, Bloomberg has reported.