Eurobank struggles to flip loan-recovery unit to PIMCO, report says

Greece's Eurobank is struggling to finalize a deal to sell a majority stake in its loan-recovery business to US money manager PIMCO, sources familiar with the matter told Reuters, after a Sept. 30 deadline passed with no agreement.

The sale is a key component of clean-up efforts at Greece's third-biggest bank, which has pledged to quickly cut the problem loans that comprise more than a third of its total lending.
On July 1 Eurobank picked PIMCO, its sixth-biggest investor, as the preferred bidder for an 80 percent stake in its Financial Planning Services (FPS) unit, setting a three-month deadline to reach an accord.
One of the sources said Eurobank valued FPS at about 300 million euros ($329 million) and was struggling to bridge a valuation gap with PIMCO, which judged the unit's worth at well below that threshold.
Eurobank is keen to finalize the sale of FPS,...