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| Computer Translations Übersetzungen Traductions Traduzioni
Traducciones Traduções Oversettelse
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| Date |
10/09/1999 |
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BANCO SANTANDER CENTRAL HISPANO - BANCO COMERCIAL PORTUGUES - |
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EC 2 week deadline on Portuguese gvmt re BSCH / Mundial deal |
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The Portuguese Government allowed Banco Commercial Portugues a further 5 weeks to mount a bid for Mundial Confianca. Mundial has complained bitterly and states that a process for a counter bid normally restricted to 20 days will have been stretched to 20 week.
The events relate to a deal by which Spanish Banco Santander and Central Hispano was to gain 40% holding in Mundial Confianca in return Mundial was to gain 1.6% of BSCH & Antonio Champalimaud, the founder and majority owner was to gain a seat on the BSCH board. The problem is that Mundial, an insurer, owns controlling stakes in 4 Portuguese banks and the Portuguese government does not want these controlled by a Spanish bank.
Since then the government has continued to block the deal and arranged for one immediate offer for the insurer by BCP. This failed. The current events relate to a proposed second offer which would normally have to follow within a period of 20 days.
The European Union Executive and the European Commission competition commissioner have attempted to intervene. The EU & EC have both pointed out that the only reasons a country may block an acquisition of a bank is on prudential grounds. Any issues of restriction of competition are determined and judged by the EC. Several deadlines have now passed. The latest set by Karel Van Miert is for two weeks time. He is quoted as saying they will face court action after that time. Ultimately it is a case the Portuguese government is unlikely to win. It can, if it chooses, use the various procedures and courts to block any final decision for at least three years.
To ensure there were no back door solutions by the original parties, the Portuguese government also reduced Champalimaud's voting rights in Mundial from 52% to 10%. Leaving the substantial financial group without any clear leadership in the interim. One of the reasons quoted by BCP for needing the extra time is in order to call an EGM. This they say is necessary as Mundial complained of irregularities at the AGM and BCP wish to clear these matters up.
Relations between the Spanish and Portuguese governments had been improving until this incident. This intervention has caused a considerably worsening.
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