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UPDATE 1-Colonial grants buy options on FCC, SFL

Published 11/26/2008, 04:12 AM
Updated 11/26/2008, 04:14 AM
NWG
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* Grants buy options on 15 pct of FCC and 33 pct of SFL

* Creditors have until Jan 2009 to exercise options

* Colonial still trying to sell stakes elsewhere

(Writes through, adds detail)

MADRID, Nov 26 (Reuters) - Colonial has granted buy options on its 15.45 percent stake in Spanish builder FCC and its 33 percent of French unit SFL to its creditor banks, the property developer said on Wednesday.

Colonial is still seeking buyers for the stakes, it said, despite giving the buy options to the banks who can exercise them between Dec. 11 2008 and Jan. 10 2009.

"It essentially provides more guarantees to the banks and also gives them bargaining power to do what they want with their respective stakes in the two companies," an analyst at a local brokerage said.

Colonial agreed to sell its FCC and SFL stakes as part of a deal in September with its creditors -- including Goldman Sachs , Royal Bank of Scotland, Calyon and Eurohypo -- to refinance its about 7 billion euros ($9 billion) of debt.

The four banks will hold 3.4 percent of FCC and 7.25 percent of SFL each, while the other members of the banking syndicate will hold a combined 1.87 percent of the Spanish builder and 3.99 percent of the French property developer.

At 0858 GMT Colonial shares were flat at 0.16 euros and FCC shares were down 1.1 percent at 27.69. The IBEX leading share index was down 0.7 percent. (Reporting by Jonathan Gleave; Editing by David Holmes)

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