US billionaire targets more European bank deals

Billionaire US investor Wilbur Ross is targeting more deals in Europe’s financial services industry after buying into a listed company that failed to make its own inroads into the sector.

Mr Ross, founder of private equity firm WL Ross & Co, owns a 9% stake in Bank of Ireland and half of Britain’s Virgin Money. He said yesterday he saw no shortage of opportunities for more deals in Europe.

He is paying about £8m (€9.9m) to buy up to 37.8% of NBNK to use as an acquisition vehicle.

NBNK was set up two years ago, but said in June it would wind up after failing to buy a trio of assets, including a network of 632 branches sold by Lloyds Banking Group.

“Given the turmoil in financial services very few companies can get access to public capital markets so we feel a company like NBNK, that is listed and has supportive share-holders, will be attractive for a number of companies,” Mr Ross told Reuters.

He said he would “cast the net wide” and did not have a specific deal in mind, but added: “Judging from the amount of inbound calls we have received already, I do not believe there will be a shortage of opportunities.”

NBNK said Mr Ross planned — in consultation with other shareholders — “to review its [NBNK’s] investment policy including investment in continental Europe.”

Mr Ross said: “We’re confident we can find some interesting investments. We are serious about it, but it’s hard to forecast in advance what it will accomplish,” he said from Brussels