China's Fosun Builds Stake in Portugal's Biggest BankTHE ASSOCIATED PRESS
Lisbon, Portugal (AP) -- Shares in Banco Comercial Portugues, Portugal's biggest listed bank, have surged after China's Fosun took a stake that has made it the bank's biggest shareholder.
BCP S.A. shares were up more than 3 percent late morning trading Monday on the Lisbon stock exchange at 1.3 euro.
Like most of Portugal's banking sector, which is weighed down by bad loans, BCP has struggled to make a profit in recent years. Analysts say Fosun, which has invested heavily in Europe, has the financial clout to help BCP recover.
BCP said Fosun paid 175 million euros ($190 million) for
16.7 percent of the bank's capital. Fosun is considering extending its stake to around 30 percent.
The Shanghai-based conglomerate owns Club Med and other businesses in Europe, including Portugal's biggest insurance company, Caixa Seguros.