Isabel dos Santos wants to merge Banco BPI and Millennium BCP

Mar 05, 2015

She called for the creation of a Portuguese "mega bank" with a presence in Angola

As the second largest shareholder of Banco BPI Portuguese bank with 18.6 per cent of its capital, Angolan business woman Isabel dos Santos wants to merge the bank with its Portuguese rival Millennium BCP.

A merger between the two leading listed Portuguese banks would create the first private bank of Portugal, with a market capitalisation of €6.8 billion and a market share estimated at about 30 per cent.

The proposal of the daughter of the Angolan president aims to counter the $1 billion takeover bid launched on February 17th by CaixaBank on Millennium BCP, the leading shareholder of Banco BPI (44 per cent).

She sent a letter to the leaders of the two Portuguese banks and CaixaBank, in which she wrote that the CaixaBank offer does not reflect the real value of the BPI and that alternatives must be considered.

She called for the creation of a Portuguese "mega bank" with a strong presence in Angola, Mozambique and Poland.

Millennium BCP, which had tried unsuccessfully to negotiate a merger with its rival Banco BPI in November 2007, immediately declared in a statement sent to the stock market watchdog its readiness to "analyse a merger".

According to Jeune Afrique, Isabel dos Santos could find an ally to support her proposal in the Angolan national oil company Sonangol - the largest shareholder of Millennium BCP with 19.44 per cent of the capital.ADNFCR-2976-ID-801778402-ADNFCR