MADRID--The board of Banco Popular SA (POP.MC) prefers that the
Spanish mid-sized lender remains stand alone, Chief Executive
Francisco Gomez said Friday in response to a question about recent
speculation of a takeover approach by bigger rival CaixaBank SA
(CABK.MC).
"The board has reiterated its absolute preference for
independence," Mr Gomez told analysts during a conference call,
following the release of second-quarter earnings earlier in the
day.
Mr. Gomez also said that's the same preference as shareholders,
adding that the lender--currently the fifth largest by market value
in Spain--has an appropriate size to compete.
In recent days, Spain's press reported that CaixaBank has again
approached Popular's management with an offer of talks leading to a
takeover. Similar contacts ended inconclusively last year,
according to people with knowledge of the talks.
Earlier Friday, Popular said net profit dropped 12% in the
second quarter, amid falling lending and fee income, as its pool of
soured loans continued to grow.
Write to Pablo Dominguez and David Roman at david.roman@wsj.com
Twitter: @dromanber