The bailout of Portuguese bank Banco Espirito Santo SA (ELI:BES) by the European Union has been challenged by hedge funds that held major investments in the company. Those leading the charge are Dan Loeb's Third Point and Brazilian investment company BTG Pactual.
Dan Loeb challenges Banco Espirito Santo bailout
According to a report from the Financial Times, Third Point and BTG Pactual filed a lawsuit challenging the terms on which Banco Espirito Santo was rescued by the European Union. The hedge funds launched their complaint in a EU General court in Luxembourg last Friday. They allege that the bailout was put together too quickly and that the bank's condition was not fully reviewed. Third Point and BTG also claim there were alternatives for...
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