If the smaller rival convinces its shareholders to accept a higher bid for Anima Holding SpA, UniCredit, the biggest bank in Italy, has stated that it will withdraw from a takeover offer of Banco BPM SpA.
In a statement, UniCredit stated that the actions that BPM’s shareholders are being requested to take could be in opposition to the goals of the public exchange offer that UniCredit S.p.A. (“UniCredit”) made on November 25, 2024, and that was directed at BPM (the “Offer” or “UniCredit Offer”).
In late November of last year, UniCredit offered to purchase Banco BPM, the second-largest bank in Italy, for €10 billion. Following BPM’s €1 billion effort to purchase Anima in order to increase its asset management fee revenue in the face of declining interest rates, UniCredit made a counteroffer. Giuseppe Castagna, the CEO of BPM, turned that offer down.
Regulations, however, made it difficult for the bank to follow through on its offer to Anima because of UniCredit. Targeting banks are prohibited by Italian law from moving forward with an acquisition offer without the consent of shareholders. On February 28, BPM must call a shareholders’ meeting to approve its higher bid for Anima. A bid price rise from €6.2 to €7 per share is being offered. If Anima is acquired, BPM’s market value will rise to almost €13 billion, significantly higher than UniCredit’s offer price. Earlier this month, CEO Andrea Orcel declared that he would not overpay for the deal.
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