Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

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Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

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Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

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Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

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RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Categorized | Banks

Banco BPI clears way for Caixabank deal

Posted on September 21, 2016

The new logo of CaixaBank is seen next to that of La Caixa on top of their headquarters in Barcelona June 30, 2011. CaixaBank, which is 81 percent-owned by Spain's second-biggest savings bank La Caixa, will float on July 1 and plans to grow its market share in Spain organically as well as through acquisitions, while also eyeing further overseas expansion. REUTERS/Albert Gea (SPAIN - Tags: BUSINESS) - RTR2OAI2©Reuters

Portugal’s market regulator has told Spain’s Caixabank to launch a mandatory takeover bid for the 55 per cent of Banco BPI it does not already own, after shareholders in the Portuguese bank lifted the main obstacle to a deal.

More than 88 per cent of BPI investors on Wednesday voted to remove a voting rights cap on Caixabank’s 45 per cent stake in its Portuguese rival, which had stopped the Spanish bank from launching a full takeover offer.

    Caixabank, Spain’s biggest bank by domestic market share, is expected to fund the €880m transaction without resorting to a rights issue, according to a person briefed on its strategy. But if Caixabank’s bid is fully accepted, it would cut its core capital ratio to about 10.5 per cent — below its target of between 11 and 12 per cent.

    For some months, the future of BPI — which has a market capitalisation of €1.6bn — has been clouded in uncertainty by a dispute between Caixabank and Isobel dos Santos, the billionaire daughter of Angola’s president, who owns 20 per cent of BPI.

    Ms dos Santos abstained in Wednesday’s vote, allowing the voting cap to be lifted, and she is now expected to sell her stake to Caixabank. To proceed with the deal, the Spanish bank will have to adjust its offer price to the latest six-month average, but that is unlikely to increase the cost significantly.

    Another key to unblocking the deal impasse was a proposal by BPI to sell 2 per cent of its Angolan operation, called BFA, to a company controlled by Ms dos Santos. That would cut BPI’s stake in BFA to less than 50 per cent and help the Portuguese bank comply with EU rules requiring it to reduce its exposure to Angola.

    A takeover of BPI would represent the latest step forward for Portugal’s undercapitalised banking sector, following an agreement last month between the Lisbon government and the EU over a €5bn recapitalisation package for state-owned Caixa Geral de Depósitos, the country’s largest lender.

    Portugal is still trying to sell Novo Banco — the “good bank” rescued from the wreckage of Banco Espírito Santo — after an earlier auction failed last year. Meanwhile, Millennium BCP, Portugal’s largest listed lender, is holding talks with Fosun about the possible acquisition of a 30 per cent stake by the Chinese group.