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Caixa Geral de Depositos Unit Probed by EU on Dividend Payments

Dec. 18 (Bloomberg) -- European Union regulators are probing a unit of Caixa Geral de Depositos SA over dividend payments which they said may be a misuse of rescue aid.

Caixa Geral Finance Ltd. paid 405,415 euros ($534,600) in dividends on perpetual preference shares to institutional investors without the consent of the European Commission, the Brussels-based authority said in an e-mailed statement today.

Regulators in June approved Caixa Geral de Depositos to receive 1.65 billion euro in Portuguese bailout funds on condition that it abstain from any payments to holders of capital instruments, the EU said.

To contact the reporter on this story: Aoife White in Brussels at

To contact the editor responsible for this story: Anthony Aarons at

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