UniCredit launches €10b bid for Banco BPM

UniCredit surprised markets on Monday by launching a €10 billion ($11 billion) all-share bid for Banco BPM, signalling a shift in focus from a potential takeover of Germany’s Commerzbank.

CEO Andrea Orcel said the move was driven by increased consolidation in Italy’s banking sector, following Banco BPM’s recent acquisition of a stake in Monte dei Paschi di Siena and its bid for fund manager Anima Holding.

The offer values Banco BPM shares at €6.67 each, representing a 0.5 per cent premium to Friday’s closing price. Orcel emphasised that UniCredit’s limited presence in Lombardy, where BPM is headquartered, made the acquisition a strategic priority.

While maintaining its 21 per cent stake in Commerzbank, UniCredit indicated that a German deal remains a future possibility, contingent on political developments.

The bid for Banco BPM has caused market reactions, with BPM shares rising 3.2 per cent in Milan, while UniCredit and Commerzbank shares fell 4 per cent and 7 per cent, respectively.

Attribution: Reuters

Subediting: M. S. Salama