Millennium bcp to speak on BPI merger Oct. 30

By Henrique Almeida

LISBON (Reuters) - Millennium bcp (BCP.LS: Quote, Profile, Research, Stock Buzz) is reviewing a merger proposal by rival BPI (BBPI.LS: Quote, Profile, Research, Stock Buzz) that would create Iberia's third largest listed bank and will speak to the market on Tuesday, its chief executive officer said on Friday.

"On October 30 we will present our third quarter results. At that time, the executive board will be ready to clarify the market (on the proposed merger)," Millennium chief executive, Filipe Pinhal, said in a message to workers obtained by Reuters.

The unsolicited approach, just months after Millennium failed in a hostile bid for BPI, involves a share swap of 0.5 BPI shares for each Millennium share and values Millennium at around 12 billion euros ($17.2 billion).

A source close to a Millennium shareholder said the chairman of Millennium bcp had told him he would back the merger, which could turn BPI's offer into a friendly one and increase its chances of being approved by Millennium shareholders.

However, Millennium Chairman Jardim Goncalves said in a statement late on Friday that he had not made any assessments of the offer.

"The proposal ... is of the exclusive authorship and responsibility of BPI," Goncalves said. "I have made no qualitative assessment of such a proposal."

Analysts said the merger between the two local rivals was likely to succeed.

"Since BPI has made this bold move, it probably already had some indication of success," Santander said in a research note. "Will the deal go through? Probably."