(Bloomberg) — Banco BPM SpA is set to discuss a surprise takeover offer from UniCredit SpA, investors say, in a move that has upset the Italian government and complicated efforts to build a new banking group in the country. Waiting for reaction to movement.
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The Italian regional lender's board of directors will convene on Tuesday for a previously scheduled session, the people said. The meeting will almost certainly focus on the unsolicited bid unveiled a day earlier, said the people, who requested anonymity to discuss internal plans.
A representative for Banco BPM declined to comment.
UniCredit Chief Executive Andrea Orcel has had Banco BPM in his sights for years, but the timing of the proposal hinged on a recent deal that could create a new force in Italy's banking world. There is a possibility. The Rome government is aiming to form a major banking group centered around Banca Monte dei Paschi di Siena to compete with the two largest companies, UniCredit and Intesa Sanpaolo. Orcel's move complicates that effort.
UniCredit's all-share tender offer, disclosed on Monday, values Banco's BPM at 6.657 euros per share, or about 10.1 billion euros ($10.6 billion) based on Friday's prices. Banco BPM extended its gains on Tuesday, rising 1% to 7.08 euros as of 11:30 a.m., a sign that investors believe the bid could be raised. are.
Equita analyst Andrea Risi said in a note on Monday that a combination of the two banks “will undoubtedly have significant industrial value.” “But we recognize that premiums have limits.”
Orcel's bid came after Banco BPM bought a 5% stake in Monte Paschi from the government. If Banco BPM succeeds in acquiring asset management company Anima Holding SpA, which also owns Monte Paschi shares, its shares could rise further.
Banco BPM's investors include Credit Agricole SA, which owns about 9% of the company, according to data compiled by Bloomberg. The French financier may have increased its stake to 19% through a share swap, Il Sole 24 Ore newspaper reported on Tuesday, citing “rumors circulating in trading rooms.”
Credit Agricole has not asked regulators for permission to hold more than 10% of Banco BPM, a spokeswoman for the French bank said.
Orcel informed Banco BPM Chairman Massimo Tononi of his intention to launch a bid before Monday's announcement, Bloomberg reported.
