Bidding competition for a controlling stake of Chile’s Corp Banca has started, and a deal may be closed as early as this week, according to reports.
Billionaire Alvaro Saieh, Spain’s Banco Bilbao Vizcaya Argentaria and Brazil’s Itau Unibanco has been suggested to be interested in purchasing a stake big enough to permit for control of the bank.
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"There has been no decision in respect of whether the deal will involve shares, cash or both. The only thing that is clear so far is that the formula being discussed is one of co-control for Saieh", a source claimed.
According to the sources, who preferred to retain their anonymity, that the transaction is not strictly restricted to a merger. Outright sale and the creation of a structure allowing Saieh to maintain his relevant shareholder position are also options.
Chile’s fourth largest bank’s, which also operates in Colombia, security filing last week disclosed its consideration of a merger with a local or international bank.
Investors were surprised by the timing of this decision, expecting the bank to finalise the integration of the two banks recently bought in Colombia.
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By GlobalDataSaieh is involved in various industries, ranging from retail to hotel. He has bought and sold financial assets in the past.
Corp Banca’s sale could be the opportunity for Itau to buy a Chilean bank, following a few unsuccessful efforts in the past.
HSBC Security Analyst Carlos Gomez-Lopez said: "It is well known that Itau has the cash to invest and the intention to continue growing in Chile and Colombia."
If Banco Bilbao Vizcaya Argentaria achieves to close the deal, the merger would create the second biggest lender in Colombia.
All the banks declined to comment on speculation about talks.
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