Patricia Kowsmann

LISBON--Banco BPI SA (BPI.LB) shares were suspended from trading Thursday pending an announcement, the country's markets regulator said.

BPI shareholders on Wednesday rejected a proposal to lift a 20% cap on voting rights, representing another blow to Caixabank SA's 1.09 billion euro ($1.23 billion) takeover offer for the lender.

Spain's Caixabank (CABK.MC) offered in February to buy the 55.9% of the Portuguese lender that it doesn't already own for EUR1.329 a share in cash. The offer was quickly considered too low by BPI's board.

As part of the offer, Caixabank said BPI shareholders would have to approve a change in the bank's laws to lift a current 20% cap on voting rights.

Caixabank hasn't raised the offer or commented on its next steps.

Write to Patricia Kowsmann at patricia.kowsmann@wsj.com

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