CaixaBank SA may withdraw its bid for Portuguese lender Banco BPI if it isn’t able to increase its voting rights, a person with knowledge of the plan said.
The Spanish lender would consider pulling its 900 million-euro ($1 billion) offer for the portion of BPI it doesn’t already own if the Portuguese bank doesn’t agree to scrap a limit on voting rights, said the person, who asked not to be named because the plans are private. BPI shareholders are set to meet Tuesday to vote on the matter.
CaixaBank, which already owns almost half of BPI, has been trying for more than a year to buy out other BPI shareholders. Its first bid failed last year after the Portuguese lender opted to maintain the cap, which restricts a shareholder’s voting rights to 20 percent. When starting a second bid in April, the Spanish lender said removing the limit was a key condition.
BPI dropped as much as 5.4 percent to 1.06 euros in Lisbon, the lowest in more than two months. CaixaBank was little changed in Madrid trading. El Confidencial reported CaixaBank was considering pulling the bid earlier Monday.
Earlier this year, Portugal made a legal change that allows all shareholders to exercise full voting rights on decisions about the cap, if the board introduces the proposal. BPI’s board supports removing the cap.
A BPI shareholders’ vote on the rights limit was postponed in July after a minority investor, Holding Violas Ferreira, obtained an injunction questioning the procedure.