Banco Espírito Santo, S.A. (BKESF)

Portugal's Millennium bcp withdraws court action against rival Novo Banco

Portugal's largest private lender Millennium bcp said on Wednesday it had withdrawn its case from a European court against multi-billion euro injections by the Portuguese Resolution Fund into the capital of its rival Novo Banco. The resolution fund is the common responsibility of all banks based in Portugal and Millennium bcp is one of its biggest contributors. Millennium bcp launched the legal action in mid-2018 against a contingent capital mechanism, which was created in October 2017 when the resolution fund sold 75% of Novo Banco to U.S. private equity fund Lone Star, keeping the remaining 25%.