Belgian bank set to make loss selling off its British brokerage
BELGIAN bank KBC has put its London brokerage and corporate finance house, KBC Peel Hunt, up for sale.
The struggling bank has had to borrow around €7bn (£6.3bn) from the Belgian government, and is now likely to make a huge loss on its investment by selling the brokerage.
KBC bought Peel Hunt in a deal valuing the company at £218.5m after it was floated on the Alternative Investment Market in 2000. The chances of selling now for a fee even close to that figure are thought to be very slim.
A likely resolution might be a management buyout led by chief executive Simon Hayes, although rival brokerages such as Collins Stewart are also believed to be interested in the business.
KBC’s Irish retail banking operation would be likely to go next should the Belgian bank look to sell off any further assets.
The bank is due to submit a report on strategic review to the European Commission by the end of the month.
A spokeswoman for the company said the review was ongoing, and that in the meantime any “rumour or speculation is very premature”.