Negotiations to salvage the merger between Unicaja and Caja España-Duero are hanging in the balance. After weeks of back and forth, it is now doubtful whether the deal with go through.
Today advisers from both savings banks will look closely at various options for making the deal work. Ultimately, either the deal succeeds soon or fails definitely.
The meetings and the pressure will continue until then. Two days ago the same barrier existed: the Bank of Spain is not ready to offer any aid to save the deal even though Unicaja's president has asked for it.
President Braulio Medel thinks that financial reforms in Spain have made it difficult for the proposed merger to work, because España-Duero would have to put up upwards of 638 million euros in additional investment capital and another 502 million euros of its own capital.
Facing these requirements, Medel has asked several times for aid from various sources and through various means, but Ordoñez and the Bank of Spain continue to reject the requests.
