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| Computer Translations Übersetzungen Traductions Traduzioni
Traducciones Traduções Oversettelse
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| Date |
11/10/1999 |
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BANCO COMERCIAL PORTUGUES - BANCO SANTANDER CENTRAL HISPANO - |
| Subject
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EGM called to consider BCP offer for Mundial Confianca. |
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A shareholding grouping in Mundial Confianca have called an EGM to consider the break up of part of the Mundial Confianca group and sale of it to Banco Comercial Portugues. The EGM is also to consider changes to the board of directors.
If the Portuguese government action, which reduced the voting rights of the majority owner, Antonio Champalimaud from 52% to 10%, remain in place the group should not have difficulty in gaining these changes. The rebel shareholders are said to include UK insurer, Norwich Union. Norwich Union is also active in the Iberian region through its Plus Ultra venture.
An original deal by Antonio Champalimaud would have sold 40% of the group to Banco Santander and Central Hispano in return for 1.6% of BSCH plus 48% of the BSCH Portuguese banking operation. The deal is blocked by the Portuguese government. The European Commission has ruled the Portuguese government interference illegal. If the matter is not resolved shortly it is likely to be referred to the European Court of Justice. The government' concern was not over the insurer, Mundial Confianca, but over the four banks it holds a controlling interest in. The government does not wish to see the banks fall into the hands of the Spanish. A bid was launched shortly after the merger proposal by BCP for all of Mundial Confianca but blocked by the Champalimaud controlling interest. Since that time the reduction in Champalimaud's voting interest has left the company without proper management control.
It is understood the objective of the EGM is to try and separate some or all of the banking interests for possible sale to BCP leaving the insurance group independent. Champalimaud stated quite recently that he would reluctantly consider forgoing the BSCH deal and possible even accepting the BCP offer to break the deadlock though he still believed the Portuguese government to be acting illegally.
Any decision by the EGM, if it is dependent on the reduced voting rights of Champalimaud could be overturned by a European Court of Justice ruling, or a later out of court settlement. If the matter is referred to the ECJ it may not be heard for up to two years. It therefore remains to be seen whether an EGM will help resolve or further confuse an outcome to the matter
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