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Millennium bcp shareholders to vote on defence plan

Millennium bcp Chairman Jorge Jardim Goncalves has proposed raising the number of shareholders needed at a general shareholder meeting to alter the company’s voting right limits to 75 percent from 66 percent.

Millennium bcp statutes limit each shareholder’s voting rights to a maximum of 10 percent. The shareholder meeting is expected to start after 1400 GMT.

But according to weekly Expresso, 27 to 40 percent of Millennium bcp shareholders present at Monday’s meeting are expected to reject the bank’s plans to boost its defences, a move some analysts say could lift Millennium’s shares.

‘The shareholder meeting will be decisive,’ said John dos Santos, an analyst at Lisbon Brokers. ‘If shareholders don’t approve the motion, the market will continue to add speculative value to Millennium bcp shares.’

Analysts believe bcp could become a takeover target, although no party has stepped forward.

Keefe, Bruyette & Woods increased Millennium bcp’s price target to 3.9 euros per share from 2.8 euros on Monday as the bank could be seen as a ‘break-up/takeover candidate in the current environment and has short term catalysts.’

Keefe maintained a ‘market perform’ rating for the stock.

At 0859 GMT shares in Millennium bcp traded 2.34 percent higher at 3.50 euros in average trading volume after reaching a five-year high of 3.52 euros earlier.

Millennium bcp Chief Executive Paulo Teixeira Pinto recently told Reuters the bank wanted to increase in size and build a greater presence in the European market.

Millennium bcp, which recently failed in a 5.3 billion euro ($7.12 billion) hostile bid for smaller rival BPI, also has operations in Greece, Poland and Romania.

Millennium bcp shares trade at 14.25 times 2007 forecasted earnings, compared to rivals BPI’s 15.06 times and Banco Espirito Santo’s 16.53 times.

The bank is due to announce new expansion goals on June 1.