Roundup: Colpatria to find partner soon, BB tender offer for Patagonia, asset quality

Friday, October 7, 2011

Colombian bank Colpatria will likely announce an international strategic partner over the next few days, sources confirmed to BNamericas.

The shortlist of candidates has been narrowed down to Brazilian banks Banco do Brasil (BB) and Itaú Unibanco (NYSE: ITUB), as well as Canada's Scotiabank (NYSE: BNS).

In March, the bank's controlling family bought back the 49.7% stake in Colpatria held by General Electric's (NYSE: GE) financial arm, GE Capital.

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Argentina's Banco Patagonia has announced the conclusion of a mandatory tender offer jointly launched by Brazil's BB and the selling shareholders. Following the tender offer, BB raised its equity stake in Banco Patagonia to 58.96%.

BB purchased a 51% stake in Patagonia in April 2010 after paying US$480mn - or US$1.31 a share - to the Argentine bank's former owners, the Stuart Milne brothers.

The Brazilian bank paid minority shareholders the same price.


There are no signs of asset quality deterioration in the Chilean, Mexican, Peruvian and Colombian banking systems, as they all had stable delinquency ratios in July, according to a report by Deutsche Bank (NYSE: DB).

On the other hand, Brazil is furthest along in the cycle and continues to show signs of gradual deterioration in asset quality with the non-performing loan ratio rising 10 basis points compared to end-June, to 5.3%, which is consistent with Deutsche Bank's view of a "soft landing" in the country.