Banco Espirito Santo: a Portuguese bank on its last legs. And a Financial Times living on its laurels.

Portugal’s Banco Espirito Santo shares plummeted by 15% after it announced plans to raise €1B in capital through a rights issue.

The offering price is set at a 66% discount to the closing price yesterday [Wednesday].

That is a very desperate bank.

But this is what the FT wrote six days ago:

‘As of Apr 06, 2012, the consensus forecast amongst 14 polled investment analysts covering Banco Espirito Santo SA advises that the company will outperform the market.’

Hmm. Another reason why I won’t be renewing my FT subscription this year. Note the pompous proclamation one gets when quoting from FT ‘analyses’:

‘High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail.’
What a joke.