Blackstone et al consider BMN investment

Carlyle Group and JC Flowers have also expressed an interest in acquiring up to 20% of the savings bank.

An investment by the firms would ensure that Grupo BMN (which was formed through the merger of CajaGranada, Caja Murcia, Caixa Penedés and Sa Nostra) meets the demands of the Bank of Spain, which is making its banks increase their capital levels to reassure global markets about the stability of the financial system.

The prospective investors have valued BMN at 0.3-0.5x book value, up to 70% less than most saving banks' market value before the onset of the recession. This valuation is also significantly less than the 0.8x book value at which Caixabank, the financial arm of La Caixa, will be listing in July.

BMN's team could find itself pushed into accepting an offer, however, as the right moment to list on the stock exchange is rapidly passing, with both Bankia and Banca Cívica already having announced their intention to list. The only alternative at present would be to accept help from the Bank of Spain's FROB fund, something which, thus far, the savings banks have managed to resist.

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• Topics
• Financials
• Expansion
• Southern Europe
• Blackstone Group
• Carlyle Group
• Lone Star Funds
• Cerberus Capital Management
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