LISBON Nov 29 The Bank of Portugal has
authorised the country's postal service CTT, which is being
privatised via the stock exchange, to set up banking services if
future shareholders opt to do so, the company said on Friday.
The government expects to pocket up to 580 million euros
($789 million) from the sell-off required under the terms of the
country's EU/IMF bailout, and has previously said a banking
license for the service's many branches across Portugal could
help boost CTT's appeal among investors.
CTT said the authorisation was "subject to a set of
conditions and requirements, especially confirmation by CTT's
new shareholders" that the postal bank project will be
implemented under terms initially proposed by CTT in August.
"CTT has no obligation to set up the postal bank. It only
has the option to do so," it said, adding that its board decided
on Thursday against any immediate action regarding banking
Earlier this month, the government set a price range for the
share offering of 4.10 to 5.52 euros per share, meaning it hopes
to raise between 430 million euros and 580 million euros in the
planned sale of 70 percent of CTT.
Retail investors were offered 21 million shares out of a
total 105 million on the block, and securities market regulator
CMVM said on Thursday that demand outstripped supply by 7 times.
No numbers were provided for bids by institutional investors.
Monday is the last day when bids can be submitted and on
Tuesday the government will fix the final price range. The
shares will be floated on the Lisbon bourse on Thursday.
The government has said it has been encouraged by the
privatisation of Britain's Royal Mail in a similar
offering last month and the flotation of Belgium's bpost
in June as strong equity markets have helped revive
new listings in Europe this year.
Lisbon has already beaten its bailout target to raise 5.5
billion euros from privatisations by the end of 2013, having
pocketed more than 6.4 billion euros from previous direct sales
of stakes in power firms EDP and REN, as well
as in airport operator ANA.
($1 = 0.7353 euros)
(Reporting By Andrei Khalip; editing by Tom Pfeiffer)