MILAN, Feb 4 (Reuters) – Banco BPM (BAMI.MI) Chief Govt Giuseppe Castagna on Saturday dominated out a possible acquisition of Monte dei Paschi di Siena (BMPS.MI) saying the state-owned financial institution is just too huge to swallow.
Monte dei Paschi is 64% owned by the Italian state, which must finally minimize its stake to satisfy re-privatisation commitments given to the European Union on the time of the bailout.
“We’re too small,” Castagna stated when requested about Monte dei Paschi.
On Friday Intesa Sanpaolo (ISP.MI) CEO Carlo Messina stated his financial institution’s market share in Italy was such that it prevented any home M&A when requested about Intesa’s potential involvement in Monte dei Paschi’s re-privatisation.
Earlier this week UniCredit (CRDI.MI) Chief Govt Andrea Orcel stated situations weren’t in place at current for his Italian financial institution to rethink an acquisition of the Tuscan financial institution, from which UniCredit walked away in 2021.
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Castagna, who’s up for reappointment in April, has repeatedly stated he desires to construct a 3rd giant banking group round Banco BPM however lacked the fitting companion.
Italy’s right-wing authorities has stated it regards positively the potential of creating a 3rd giant banking group round Monte dei Paschi.
Bankers say a cope with Monte dei Paschi might assist Banco BPM loosen the grip of Credit score Agricole (CAGR.PA) the French financial institution which final yr grew to become Banco BPM’s single greatest investor.
Reporting by Andrea Mandalà and Valentina Za, enhancing
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