Meanwhile, the Commerzbank approach has hit stiff opposition from German politicians, and is now on hold as the country prepares for elections after the government collapsed. Orcel said on a conference call Monday that UniCredit can be patient, but also admitted that the chance of the deal happening had reduced.
With the CEO attempting to vault the Italian bank into the top echelons of European banking, he now appears to be focusing on Banco BPM.
Under the offer unveiled Monday, UniCredit values Banco BPM at EUR6.657 a share, offering almost no premium over Friday’s close. Shares in the target rose over the bid offer and traded at EUR6.904, up 3.9%, at 2p.m. in Milan. UniCredit fell 4.4%, and Commerzbank dropped 6.2% amid questions about the future of that takeover.
While Italy is actively seeking to foster domestic consolidation, it may not favour Orcel’s move. Deputy Prime Minister Matteo Salvini openly opposed it on Monday, saying he is against such a concentration.
See also: LMS Compliance completes acquisition of 75% stake in Anchor Technology Holdings
Rome ideally wants to create a third big lender alongside UniCredit and Intesa Sanpaolo SpA, the two dominant institutions. The takeover would likely pose an obstacle to that plan.
UniCredit informed top officials in the government and Banco BPM’s chairman about its intentions before announcing the move on Monday, people with knowledge of the matter said. The offer was communicated to the government, but not agreed, ahead of the announcement, Finance Minister Giancarlo Giorgetti told reporters in Rome.
Orcel had previously ruffled government feathers in Germany in his pursuit of Commerzbank. The Italian lender used a government placement in September to buy a stake in the bank in a move that Berlin subsequently denounced as unfriendly. Germany still has a 12% holding.
See also: Ever Glory completes acquisition of Guthrie Engineering for $31.53 mil
“Given the reception we have had in certain places, we need to be patient,” Orcel said Monday.
Veteran deal maker Orcel once also considered buying Monte Paschi, but talks on a purchase of the troubled lender collapsed late in 2021. There were also reports in 2022 that UniCredit would make a takeover offer for Banco BPM.
Orcel’s latest move puts him right into the swirl of activity currently taking place in Italian banking, such as Banco BPM’s stakebuilding in Monte Paschi and potential takeover of Anima.
“We cannot remain absent from” consolidation in Italy, Orcel said on a conference call on Monday.
