Goldman Sachs is reluctant to refinance the debt of Spanish property firm Colonial, potentially blocking its buyout by Investment Corporation of Dubai (ICD), Spanish daily ABC reported on Friday.
The Middle East sovereign wealth fund has been trying to acquire partial control of Colonial, and as one of the conditions needs approval from the firm's four creditor banks to refinance its debt.
While the other three – Eurohypo, Calyon and Royal Bank of Scotland – appear to have no major objection, Goldman Sachs is now seeking immediate repayment, ABC said.
Colonial shares were down 3 per cent at €0.98 by 11.07am GMT, a day after it was dropped from Spain's blue-chip index to be replaced by engineering group Tecnicas Reunidas in a surprise move.
Meanwhile, billionaire Alicia Koplowitz, has reduced her stake in Colonial to 5.246 per cent from 9.068 per cent, according to a filing with Spanish stock regulators.
Colonial said a board meeting on Thursday had ended without a decision on the takeover offer from ICD, and another meeting had been scheduled for March 18 – a day before the bid deadline.
Board approval is another condition for the deal to go through. (Reuters)
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