Adamant: Hardest metal
Friday, May 9, 2003

Venezuela's Banesco Seeks to Acquire Exterior, Universal Says

By Peter Wilson

Caracas, May 5 (<a href=quote.bloomberg.com>Bloomberg) -- Banesco Banco Universal, Venezuela's fourth-largest bank, is seeking to acquire Banco Exterior SA, or Corp Banca in a bid to gain new customers and cut costs, El Universal reported.

Banesco has approached both banks about a possible purchase, the newspaper said, citing unidentified banking officials. An acquisition would put Banesco within striking distance of overtaking Banco de Venezuela SA to become the country's third- biggest bank.

Exterior and Corp Banca had no immediate response to Banesco's overtures, the newspaper said. Corp Banca is the country's ninth-largest bank by assets and Exterior is 11th.

Venezuela's banking industry is going through a period of rapid consolidation, with the number of financial institutions expected to drop by half from its current number of 52, analysts have said.

(EU 5/5 1-16) To see El Universal's Web site, click on {EUDC } Last Updated: May 5, 2003 07:59 EDT

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