Bantismo Says HSBC Not Buying

Central America’s largest banking group, Panama-based Grupo Banistmo, has denied rumors that it is to be bought by UK bank HSBC. Banistmo was commenting on local newspaper reports that a sale was imminent. In February, Banistmo bought a 53.7% stake in El Salvador’s Inversiones Financieras Bancosal. And it is planning to enter the Guatemalan market by 2007. HSBC meanwhile has been on something of a spending spree in Latin America. Earlier this year, it agreed to buy the Argentine unit of Italy’s BNL for $155 million and the Paraguayan assets of Lloyds TSB for $15 million. It has also made an application to set up operations in Peru.