BCP licks its wounds

The new rights issue from Banco Comercial Português, the largest privately owned bank in Portugal, may not have come as a surprise to shareholders, who have long been aware that it has a weak capital base. But the size of the deal and the level of the discount have certainly raised some eyebrows.

The bank announced the plans for an issue after a shareholder meeting late last month. The move came just over a month after disappointing 2002 annual results were issued.