UniCredit’s Potential BPM Takeover Bid Faces Uncertainty

Milan: UniCredit CEO Andrea Orcel announced that the Italian banking giant may allow its proposed takeover bid for rival Banco BPM to lapse. This development comes after the Italian government exercised its ‘golden powers’ to impose conditions on the deal, raising questions about its feasibility.

According to Ansa News Agency, UniCredit had already signaled its intention to contest the government’s use of these powers by filing an appeal with the Lazio regional administrative court (TAR). Furthermore, the bank plans to support a review by the European Commission concerning the application of these ‘golden powers’.

The government’s conditions for the takeover include phasing out UniCredit’s activities in Russia, maintaining specific loan-to-deposit ratios, and managing investments in Anima Holding, a fund manager recently acquired by BPM. These stipulations were deemed necessary to permit the hostile takeover bid.

In response to the ongoing situation, Italy’s stock-market regulator, CONSOB, has suspended the BPM bid for a period of 30 days. This suspension provides UniCredit with a window to navigate the legal and regulatory challenges it faces.

Despite these efforts, Orcel conceded that the outcome of the appeal is unlikely to be resolved in time to ensure the transaction’s completion. Speaking at the council of the FABI banking federation, Orcel mentioned that UniCredit might reconsider its approach if the current bid does not proceed.

Additionally, Orcel confirmed that UniCredit has no plans to pursue a takeover of the insurance giant Generali, dispelling speculation of such a move.