UPDATE 2-Portugal's BES shares on roller-coaster after short-selling ban
* Portugal Telecom suffers from potential credit risk
* Shares fall as much as 13 pct, then recover
* Short-selling ban imposed on Thursday night (Adds Portugal Telecom, analysts' quotes)
By Andrei Khalip and Laura Noonan
LISBON/LONDON, July 1 (Reuters) - Banco Espirito Santo (BES) shares bounced from one-year lows on Tuesday, after authorities banned short-selling in the stock and the Portuguese bank attempted to allay concerns over problems at its parent company and possible losses in Angola.
The ban on short-selling in BES, Portugal's biggest listed bank by assets, was imposed by market regulators in London and Lisbon to limit what has been a 40 percent drop in BES stock over the past three weeks.
BES has been under a regulatory spotlight for months after saying it had sold to retail investors debt that was issued by Espirito Santo International (ESI), a holding company of the family which independent auditors in Luxembourg classified as having serious financial problems.
Yet the fallout from issues relating to the Espirito Santo family holding companies stretch beyond BES. Shares in Portugal Telecom (PT) fell sharply as some analysts warned of potential credit risk from 897 million euros ($1.2 billion) in debt PT has bought from another family firm, Rioforte.
"Rioforte may not be able to refinance the commercial paper and may have to recapitalise debt or issue convertible bonds," Javier Borrachero, an analyst at brokerage Kepler Cheuvreux wrote in a note, adding that the investment "raises big questions about the treasury policies" at PT. Continuación...