No Lisbon agreement

6 March 2015 By Fiona Maharg-Bravo, Dominic Elliott

The Portuguese bank says it’s worth 2.26 euros a share to Caixa, way above its suitor’s pitch. That’s a punchy 40 pct premium to forward book value. BPI was recently trading at a 50 pct discount. The bluster makes a deal for the group harder, but not a sale of its Angola assets.

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Portugal’s Banco BPI on March 5 urged shareholders to reject a takeover bid for the lender from Spain’s Caixabank, saying an adequate offer would be 2.26 euros a share, far above its suitor’s 1.329 euro pitch.

BPI said it put a standalone value of 2.04 euros a share on its business, with synergies identified by Caixa worth an additional 0.22 euros apiece.

Caixa, which owns about 44 percent of BPI, said in a statement on March 6 that it considered its offer to be fair and beneficial to BPI shareholders.

It added that it was unable to assess the value of a merger between BPI and Portuguese peer Millennium BCP, proposed by fellow BPI investor Isabel Dos Santos, as no terms had been put forward.

BPI shares rose 4.3 percent to stand at 1.52 euros by 1055 GMT. Caixabank shares were up 3 percent at 4.10 euros. BCP shares climbed 1.86 percent to 0.09 euros.

Context News

BPI said it put a standalone value of 2.04 euros a share on its business, with synergies identified by Caixa worth an additional 0.22 euros apiece.

Caixa, which owns about 44 percent of BPI, said in a statement on March 6 that it considered its offer to be fair and beneficial to BPI shareholders.

It added that it was unable to assess the value of a merger between BPI and Portuguese peer Millennium BCP, proposed by fellow BPI investor Isabel Dos Santos, as no terms had been put forward.

BPI shares rose 4.3 percent to stand at 1.52 euros by 1055 GMT. Caixabank shares were up 3 percent at 4.10 euros. BCP shares climbed 1.86 percent to 0.09 euros.

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