CaixaBank Raises BPI Takeover Bid as Offer Becomes MandatoryBy and
CaixaBank SA, Spain’s third-largest lender, increased its offer for Banco BPI SA after shareholders at the Portuguese bank ruled to end voting-rights limits prompting the offer to become mandatory under Portuguese law.
The Barcelona-based lender offered 1.134 euros in cash per share for the rest of Banco BPI it doesn’t already own, CaixaBank said in a regulatory filing Wednesday. It had offered 1.113 euros per share in April when it launched its second takeover bid for the Portuguese lender.
CaixaBank, already BPI’s largest investor with a 45 percent stake, has been trying for more than a year to acquire the Portuguese bank as part of a plan to boost profitability fourfold by 2017.
BPI shareholders cleared the way for CaixaBank’s bid Wednesday by agreeing to scrap voting-rights limits, a key condition for the bid. Following the shareholders’ decision, the Portuguese securities regulator CMVM said CaixaBank had a duty to make a bid as it now controls more than a third of the bank’s voting rights. Mandatory bids have different rules to determine the price offered.
Shares of BPI were suspended before the start of trading on Wednesday. The stock closed at 1.091 euros on Tuesday.
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