BPI. Between Angolan and Spanish surprise suspicion – Observer

Surprise Angolan side. Silence on the Spanish side. The pre-announced agreement for the divorce between the two largest shareholders of BPI, the CaixaBank and Isabel dos Santos, just for now at odds. But the Portuguese bank is running out of time for negotiating maneuvers and tactical retreats. If not found in the next two weeks a solution to the Angolan assets of BPI, the institution led by Fernando Ulrich will have to pay a higher daily fine of one hundred thousand euros for breach of the European Central Bank’s requirements in relation to exposure to the Angolan market .

the president of Santoro, Isabel dos Santos company that owns almost 19% of BPI, it is difficult to understand what happened. ” Mário Leite Silva responded, speaking to Lusa, the statement issued Thursday night by the Catalan bank announced the rupture of negotiations.

It is difficult to understand what happened now after having been understanding between the parties in the main terms of the agreement, including in financial matters . “

on the Spanish side, unofficial information comes via El Pais, according to which CaixaBank of those responsible have never been sure of the outcome of the negotiations, contrary to the confidence expressed by the Angolan side. According to the Spanish newspaper, the deal was going through a public tender offer (OPA) of the Catalan bank on the BPI, which was never released because the CaixaBank required to be previously approved the end of limits to voting rights in the Portuguese bank by Isabel dos Santos. The bank’s shares were suspended all last Tuesday due to the expected announcement of the agreement, according to various news, I would be virtually closed.

But the Business Journal advances another version, the that the Catalan bank ended up back on Thursday, after a meeting with the Securities Market Commission (CMVM) for not wanting to comply allegedly legislation on OPA (takeover bids). For these rules, not only the CaixaBank would have to launch a takeover bid for BPI, to exceed 50% of the bank’s capital after buying Isabel position of Santos, as it would have to offer all shareholders an equivalent price to paid to Angolan businesswoman .

the transaction with Isabel dos Santos involves 50.1% of BPI in Banco de Fomento Angola (BFA) and the Spanish institution does not agree with the assessment made by BFA.

According to El País notes, the leaders of the Catalan bank proved to be “extremely cautious, as specialists in the trading strategy of the Angolan side” throughout the period that lasted the negotiations. The dome of the Catalan bank, which controls 44% of the BPI, but only votes with 20%, have said “enough”, after the representatives of the other side have more stretched the rope.

side Angola still shows conviction that it will be possible to resume negotiations . “Still, we believe that common sense will prevail and the dialogue will be immediately resumed,” he said Mário Leite Silva, reaffirming availability after the Catalan bank announced the breakup, frustrating the expectation that agreement would be a matter of time, especially after of reported conversation of Prime Minister António Costa with the daughter of the Angolan president for BPI.

the contact would have involved also a discussion on a future Isabel entry dos Santos in BCP, a brake strategy to “Hispanization” of Portuguese banks. The conversation has never been confirmed, but generated several reactions at the political level, between PSD attacks on government interference in private business, and the support of President Marcelo Rebelo de Sousa policy interventions, since articulated with the regulator and made in name of financial stability. Discretion fits better in BPI’s situation than a potential investment of Angolan businesswoman in BCP, which always had to pass the scrutiny of the European Central Bank.

The statement of CaixaBank does not show the same opening to resume the talks, despite the intention to continue to “collaborate and support the BPI to find a solution to the situation of excessive risk concentration arising from its controlling interest in BFA [Banco Fomento Angola].” If the shareholder impasse, which has lasted for over a year, continues, the Portuguese bank’s management will propose another solution. The split of the BFA by shareholders, proposed last year, was rejected by Isabel dos Santos.

BPI has until April 10 to meet the requirements of the European Central Bank (ECB ) on exposure to large risks. Once Frankfurt considers Angola as a country that does not have a similar regulation and supervision to those in the European Union, BPI has to adjust its exposure to the Angolan market, where it holds control of the BFA, with 50.1%, or will have to make a major capital increase.