LISBON Oct 18 Portugal's largest listed bank
Millennium bcp has called a shareholder meeting on Nov.
9 to vote on raising the voting rights cap to 30 percent from 20
percent - a key condition of an offer by China's Fosun to take a
large stake in the bank.
The bank said the proposal to increase the limit was put
forward by its four main shareholders, Angolan oil company
Sonangol, Spanish bank Sabadell, Portugal's EDP
utility and Angolan-Portuguese holding Interoceanico,
wseen as a sign that they all agree.
The bank's shares rose over 3 percent in early trading on
Tuesday to 0.0161 euros.
"This is the reaction to the summoning of the shareholder
meeting, which facilitates Fosun's entry, so the stock has
gotten out of the lethargy of the past few weeks," said Paulo
Rosa, a trader at Go Bulling brokers in Porto.
Fosun Group, China's biggest private conglomerate, in July
made a firm offer to buy a 16.7 percent stake in Millennium bcp
via a dedicated capital hike with a possible further increase of
the stake to up to 30 percent. The bank's board has welcomed the
offer and is negotiating with Fosun.
The proposed deal should be a welcome boost to bcp's
capital, which along with other Portuguese banks has been a
cause of concern to investors as the country's banking system,
saddled with debt and bad loans, is still reeling from two bank
rescues by the state in 2014 and 2015.
(Reporting By Sergio Goncalves, writing by Andrei Khalip
Editing by Jeremy Gaunt)