Caixabank formally offers to buy Novo Banco, despite Portuguese government’s ‘displeasure’

Alphavalue / Divacons | US fund Lone Star, which owns 75% of Novo Banco, formally received takeover offers from both Caixabank and French banking group BPCE. In addition to the buyout offers, Lone Star is also considering the possibility of selling part of its stake through an IPO of Novo Banco in the future. There had been speculation that the value of the Portuguese bank could be between €5.5 billion and €7 billion, according to analyses by firms such as JB Capital. A key factor in this process is the position of the Portuguese government. The Portuguese authorities expressed their “displeasure” at the possibility of Caixabank, already with a significant presence in Portugal (after the acquisition of BPI in 2018), acquiring Novo Banco.

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