The bid from the bigger Italian lender “does now not replicate in anyway the profitability and additional possible to create price for Banco BPM shareholders”, it stated in a observation.
Italy’s Banco BPM has rejected a takeover bid from UniCredit, announcing the present be offering undervalues it.
In a observation, Banco BPM stated the bid from the bigger Italian lender “does now not replicate in anyway the profitability and additional possible to create price for Banco BPM shareholders”.
The observation comes after a board assembly on Tuesday, the place Banco BPM officers mentioned UniCredit’s be offering from Monday.
In a wonder transfer, UniCredit previous introduced it will be offering 0.175 of its personal stocks for every percentage in Banco BPM, valuing the inventory at €6.657 every.
In line with Monday’s ultimate costs, UniCredit’s be offering values Banco BPM at round €9.6bn.
Tuesday’s observation went on to mention that UniCredit’s be offering was once unsolicited. It reiterated that the board had complete self belief in Banco BPM’s present industry technique.
Issues about growth in Germany
The observation additionally underlined considerations about possible process losses, diminished pageant, and discussed UniCredit’s conceivable growth in Germany.
The lender has been expanding its stake in Germany’s Commerzbank, a transfer dealing with fierce opposition from Berlin.
Many in Germany worry a merger may result in process cuts and the hampering of lending to small and medium-sized companies.
Banco BPM’s press observation argued {that a} possible UniCredit takeover “exposes…stakeholders to the danger related to the result of the growth tasks introduced via UniCredit in Germany”, diluting its publicity to high-growth areas.
Political opposition
UniCredit’s bid for Banco BPM has now not simplest ruffled feathers throughout the nation’s banking sector – but in addition rattled politicians.
Financial system Minister Giancarlo Giorgetti has stated that Italy would possibly use its golden energy regulation to dam the takeover.
This mechanism lets in the Italian state to restrict or prevent transactions involving belongings of nationwide strategic significance.
The federal government in Rome were angling to shape a big banking team round Monte dei Paschi di Siena (MPS), a transfer difficult via UniCredit’s bid.
Banco BPM this month purchased a 5% stake in MPS, perceived as a possible prelude to a merger.
The federal government is slowly exiting from MPS after a 2017 bailout, lately chopping its stake from 26% to round 11%.
Additionally this month, Banco BPM introduced a €1.6bn be offering to shop for asset supervisor Anima Maintaining, in the hunt for to diversify its income streams as rates of interest fall. Anima considerably owns stocks in MPS.
Extra to come back…