Mexico's Bancrecer calls for pension fund bids 

By:  Reuters
Business Week, June 11, 2001

Mexico's Bancrecer calls for pension fund bids

MEXICO CITY, June 11 (Reuters) - Mexican bank Bancrecer on Monday called for bids for the sale of its 47.5 percent stake in the Bancrecer-Dresdner pension fund, setting a June 26 deadline for interested parties to hand in their best offers.

    The pension fund is being sold separately from the Bancrecer bank, which was shored up and recapitalized by bank deposit guarantee agency IPAB after the bank collapsed and was taken over by the government in 1999.

    German financial giant Dresdner-Allianz (DRSDn.DE) (ALVG.DE) has a 49 percent stake and an option to buy another 3.5 percent the pension fund.

   Bancrecer did not say whether Dresdner-Allianz would exercise that option.

    The pension fund has more than 660,000 account holders and nearly $600 million in assets under management.

    IPAB is expected to sell the bank, which has had some $11 billion pumped into it to restore it to financial health, by the end of the year.

    Bancrecer, like many Mexican banks, was burdened with debts after a December 1994 peso crash sent interest rates soaring over 100 percent and caused millions of debtors to default.

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