Banco BPI: equity valuation and CaixaBank's Takeover Bid of April 2016

• Autor(a) principal: Noronha, Ana Teresa Lopes Pires Bettencourt de
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/15738
• topic: Free cash flow to the equity; Dividend discount model; Relative valuation; Takeover; BPI - Banco Português de Investimento; Avaliação de empresas; Sector bancário; OPA Oferta Pública de Aquisição; Metodologia de avaliação; Portugal - 2016

Banco BPI is one of the biggest Portuguese commercial banks and, on April 2016, was targeted by a voluntary takeover bid for all of its share capital by one of its shareholders, CaixaBank, a bank that is part of the Spanish financial group "la Caixa" Banking Foundation. The bidder offered €1.113 per share for the aim of becoming BPI's majority shareholder. Therefore, BPI's board of directors issued a report in which they analyze the conditions proposed by CaixaBank and present a bank valuation based on multiples of comparable companies. The main purpose of this thesis is to perform an equity valuation of Banco BPI based on other methodologies such as: free cash flow to the equity, dividend discount model and also relative valuation based on multiples of comparable companies, in order to achieve a final price per share that can be compared to the one offered by the CaixaBank and bring another perspective to this matter.