LISBON—Portugal’s government said Friday that it reached a deal to sell Novo Banco SA to U.S. private-equity firm Lone Star Funds LP, closing a long and chaotic process that started with the collapse of Banco Espírito Santo SA in 2014. Dallas-based Lone Star will inject €1 billion ($1.07 billion) in Novo Banco for a 75% stake, while a resolution fund supported by the system’s banks will hold the remainder. The setup could ultimately leave Portuguese taxpayers exposed to losses, which is what the country’s central bank had...

Source: Wall Street Journal March 31, 2017 18:45 UTC