Friday, November 15, 2024, Banco BPM SpA bank branch in Milan, Italy.
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italian lender BPM Bank Surprise takeover bid from domestic rivals said on Tuesday UniCredit Bank Does not reflect its profitability.
Banco BPM’s board of directors said in a statement translated by CNBC that UniCredit’s 10 billion euro ($10.52 billion) bid on Monday had not been previously agreed to and was delivered on “unusual” terms.
It also failed to reflect Banco BPM’s profitability and potential for further value creation, the board added, noting that the rapid timetable of the potential merger – expected “in the shortest possible time” – would undermine the bank’s legal autonomy.
Two months ago, Unicredit, Italy’s second-largest bank, considered acquiring Commerzbank.
Banco BPM’s board said Unicredit’s offer exposed its stakeholders to these expansion plans in Germany, which represented “a significant dilution of current geographical risk, rather than Banco BPM’s concentration in the most dynamic parts of the country and the euro area” . “
CNBC has reached out to UniCredit for comment.
On Monday, the bank offered to buy Banco BPM shares for 6.657 euros per share as part of an all-stock deal, just a slight premium to Friday’s closing price of 6.644 euros.
This breaking news story is being updated.
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