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Banco Espirito Santo's 'tangled story' hammers its shares


Banco Espirito Santo's 'tangled story' hammers its shares

Portugal’s Banco Espirito Santo has been in free fall as its parent company tries to renegotiate its debt.

The bank’s stock was suspended on the Lisbon exchange by regulators on Thursday.

And its main shareholder – Espirito Santo Financial Group – asked for a halt of trading in its own shares and bonds.

It issued a statement saying that was because of “ongoing material difficulties at its largest shareholder Espírito Santo International SA” without giving details.

One analyst, Lorne Baring, managing director of B Capital Wealth Management, called it “a tangled story of cross holdings and unexplained debts which has highlighted the risks that still exist in some European banks”.

One report in the newspaper Diário Económico said the parent company – Espírito Santo Financial Group – may ask to be made insolvent in Luxemburg, where investigators are looking into irregularities.

with LUSA and Reuters


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