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Portugal has approved merge of banks for 4, 3 billion euro

17 March 2007
Written by: webmaster Posted under Finance

Antimonopoly bodies of Portugal have approved prospective purchase of Italian Banco BPI by the Portuguese Millennium BCP bank for 4, 3 billion euro. In such way the authorities have confirmed the preliminary, decision accepted in the beginning of March 2007.
The agreement, representing hostile absorption, can be arranged at observance of some “terms and obligations”. So, BCP bank should sell 60 branches, and both BCP and BPI are to get rid of the shares in the company - the emitter of credit cards Unicre - after end of merge. Besides the incorporated bank which is to become the largest one in Portugal, should sell fine and the average sized firms a portfolio of credits in cost 450 million euro. Neither Millennium nor BPI makes comments on the decision of the Portuguese authorities.
Millennium BCP offers 5, 7 euros per each BPI’s share; however analysts consider that the transaction hardly will take place at such price. According to the preliminary expectations, that Millennium will increase the sum of the offer after the official registration, BPI’s shares have up to record 6, 82 euros grown this week.
Millennium’s offer has been rejected by basic BPI’s shareholders, among which Spanish La Caixa (25 %), Brazilian Itau bank (about 25 %) and German insurer Allianz (8, 8 %) are represented.
It is worth of mentioning that up to 2006 the foreign investors had no access to the Italian bank system because of the Italian protectionist policy. Recently, the situation has changed for the better- and in the past to year the Dutch bank ABN Amro has merged Banca Antonveneta and French BNP Paribas has merged Banca Nationale del Lavoro.

 




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