Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Banco Popular make a move on Banco Pastor

Source: El Pais - Mon 10th Oct 2011

Banco Popular announced last week that it had made an offer to buy 100% of the shares of Galician-based Banco Pastor that it values at 1.362 billion euros.

If the takeover was to go ahead it would mean Spain's fifth largest lender taking over Pastor by exchanging 1.115 of its own shares issued through a capital increase for each of Pastor's shares. It is also offering 30.9 new shares for each of the convertible bonds issued by Pastor.

The deal is subject to being approved by Pastor shareholders representing a minimum of 50.1% of the bank's capital. The Pedro Barrié de la Maza Foundation, which is controlled by the Arias family, is Pastor's biggest shareholder with a 42.2% stake, according to the CNMV. Since Popular is worth six times more than Pastor in the stock market, the offer for the Galician bank will give current Popular shareholders 80% of the combined bank.

Of the 1.362 billion euros, 1.085 billion corresponds to Pastor issued share capital and 277 billion to bonds that must be converted into shares.

The offer values Banco Pastor at 3.975 euros per share, a premium of 31.2% to the latest Pastor share price. The National Securities Commission (CNMV) earlier Friday suspended trading in both Pastor and Popular following reports of their intended merger. At the time, Pastor was up 4.84% at 3.03 euros. Popular's shares in turn were up 1.34% at 3.565 euros.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs