Flowers cold on bank investment

A deal between US private equity investor Christopher Flowers and one of Spain’s troubled saving’s banks is close to the rocks.

Flowers is believed to have gone cold on a deal in principle to snap up €420m (£357m) of convertible bonds in Banca Cívica. The bank failed a crunch stress test after the agreement had been struck and Flowers insists he is not obliged to continue with the investment, according to the Financial Times.

The threat of a Spanish debt crisis has also made Flowers reluctant to forge ahead with the investment.