CaixaBank Says Existing Offer for Portugal’s Banco BPI Is Fair

CaixaBank SA said its bid for Portugal’s Banco BPI SA is fair after Banco BPI’s board advised its shareholders on Thursday to reject the offer.

The Barcelona-based bank said its plan brings benefits both for BPI and its shareholders, according to a regulatory filing Friday. CaixaBank will continue with its offer of 1.329 euros a share until its completion, it said.

CaixaBank, which controls 44 percent of BPI, last month offered 1.1 billion euros ($1.2 billion) to take full control of the lender. The bid is opposed by Isabel dos Santos, an Angolan investor who is BPI’s second-largest shareholder and proposed the study of an alternative merger between Banco BPI and Banco Comercial Portugues SA.

The Spanish lender said Friday it is not possible to assess a potential merger between Portugal’s second- and fourth-largest banks by assets “as the terms of such transaction have not been unveiled.”

CaixaBank’s offer to buy out investors at BPI is subject to the bank removing a 20 percent voting-right limit for investors. BPI shares have risen 48 percent since CaixaBank made its bid for the bank, and were trading at 1.548 euros as of 8:38 a.m. in Lisbon trading on Friday.

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