Lone Star tipped to buy Lisbon lender

Lone Star Funds has been selected by Portugal’s central bank as the best-placed bidder to conclude talks on the purchase of Novo Banco, the lender that emerged from the breakup of Banco Espirito Santo.

The new phase of talks with Lone Star does not exclude the possibility of other potential bidders improving their proposals, the Lisbon-based Bank of Portugal said yesterday.

During the talks, an attempt will be made to minimise the potential impact on government finances that may result from Lone Star’s current proposal, it said.