Spanish bank makes $1.1 billion bid for control of Portuguese ally in cross-border expansion

Associated Press

Spain's Caixabank has offered 1 billion euros ($1.14 billion) to take full control of Portugal's Banco BPI, where the Spanish bank already owns 44 percent of the stock.

Barcelona-based Caixabank S.A. said in a statement to the Lisbon stock exchange Tuesday it was offering 1.329 euros a share — a 27 percent premium on Monday's closing price. The bid values Banco BPI, S.A. at almost 2 billion euros.

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Caixabank said it would continue its support for Banco BPI's current board. The Portuguese bank, which is the country's third-largest listed lender, recorded losses of 162 million euros last year.

Analysts viewed the bid as the start of an anticipated expansion of Spanish banks into neighboring Portugal, as Spain's financial sector has recovered more quickly from the recent eurozone financial crisis.