The new rights issue from Banco Comercial Português,
the largest privately owned bank in Portugal, may not have
come as a surprise to shareholders, who have long been aware
that it has a weak capital base. But the size of the deal and
the level of the discount have certainly raised some
eyebrows.
The bank announced the plans for an issue after a
shareholder meeting late last month. The move came just over
a month after disappointing 2002 annual results were issued.
At e930 million, the deal is the largest global equity
offering so far in 2003.
The rights issue follows a e700 million mandatory convertible in
the third quarter of last year.
In a statement, Jorge Jardim Gonçalves, BCP's chairman and
founder, said: "This operation is an important initiative to attain
adequate conditions to pursue sustainable consolidation and
development for BCP."
Not a junk issueThe
...
