JC Flowers withdraws from Banca Civica deal

The investor signed a preliminary agreement in July to purchase €450m of convertible bonds in the caja. Hours later, however, Banca Cívica failed its stress test, which appears to have deterred founder Christopher Flowers from continuing with his firm's plans.

Flowers claims that the initial negotiations were never followed by a formal agreement and that his company is not therefore obliged to invest. He added that it is highly improbable that JC Flowers would acquire a financial institution in a country facing uncertainties over its sovereign credit risk and that only brave investors would consider moving into Spain or Ireland.

The deal could nevertheless still be completed once confidence has been restored in Spain's finances and Banca Cívica has completed its ongoing merger talks with competitor CajaSol.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Southern Europe
• Financials
• Spain