Bankia looks to Goldman to advise on U.S. sale

MADRID Fri Jan 11, 2013 8:14pm IST

The headquarters of Spain's Bankia bank is seen behind a red traffic light in Madrid November 28, 2012. REUTERS/Andrea Comas

The headquarters of Spain's Bankia bank is seen behind a red traffic light in Madrid November 28, 2012.

Credit: Reuters/Andrea Comas

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MADRID (Reuters) - Spanish state-rescued lender Bankia (BKIA.MC) is in advanced talks with Goldman Sachs about hiring the U.S. bank as its advisor on the sale of its Miami business, two sources with knowledge of the negotiations said on Friday.

"It's almost a done deal that Goldman will be hired but the deal has not been closed yet," said one of the sources.

At the end of November Bankia's chairman Jose Ignacio Goirigolzarri said that City National Bank of Florida (CNB) would be among assets due to be sold off as part of its enforced restructuring.

The two sources said it was too early to put a price on the sale.

Caja Madrid, one of the seven regional savings bank which joined to form Bankia in 2010, paid $927 million when it bought a 83 percent stake in CNB in 2008. It bought the remaining stake at a later date, without disclosing the price.

CNB, with total assets of $4.3 billion at the end of the second quarter of 2012, reported a net income of $19.8 million for the first half of last year.

(Reporting By Jesús Aguado; Editing by Greg Mahlich)

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