UniCredit Challenges Italian Government’s Golden Power Over Banco BPM Bid

Rome: UniCredit announced its intention to appeal to the Lazio regional administrative court (TAR) against the Italian government’s decision to impose “golden powers” on its attempt to acquire Banco BPM. This move by the government involves setting specific conditions on the takeover bid, which UniCredit plans to contest.

According to Ansa News Agency, Italy’s second-largest bank, UniCredit, has also expressed its support for a review by the European Commission concerning the application of these golden powers. The conditions imposed by the government pertain to the phasing out of UniCredit’s operations in Russia, maintaining certain loan-to-deposit ratios, and managing its investments in Anima Holding, a fund manager recently acquired by BPM.

In a statement, UniCredit elaborated on its decision to file a claim with TAR Lazio, emphasizing the need to address concerns regarding the legitimacy of the golden power under Italian and EU law. The bank views this legal action as a prudent step to gain clarity and
seek an independent assessment of the golden power’s application in this scenario.

Earlier this week, the Italian stock-market regulator, CONSOB, suspended the takeover bid for BPM for 30 days. This suspension offers UniCredit additional time to address the ongoing dispute. Notably, UniCredit’s bid has disrupted the government’s plans for a merger between BPM and Monte dei Paschi di Siena (MPS), in which the economy ministry holds over an 11% stake following a 2017 bailout.