In 2007, the Portuguese bank BCP made a tender offer of 7,00 euros per share for its competitor Banco Portugues de Investimentos (BPI). BPI’s then partners, Brazilian bank Itaú and Spain’s La Caixa, decided to ignore the proposal and refused to sell their stake, which would had yielded 936 million euros to Itau. Then the financial crisis hit the world in 2008, and since then, BPI’s market value melted down (perhaps helped by the fact that Portuguese families can’t foreclose on their homes fast enough).
Last Friday, in lieu of the never ending European crisis, Itaú has decided to sell its 20% stake in BPI to the Spaniards at La Caixa… for 0.50 euro a share (the equivalent of 93 million euros).
Portuguese newspaper Diario Economico calculates that the Brazilian bank recorded a hefty loss of 843 million euros in 5 years because of this deal… R$2.1 billion down the drain.
Seems like someone is learning how to buy and sell with Carl Icahn…