A Banco BPM SpA financial institution department in Milan, Italy, on Friday, Nov. 15, 2024.
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Italian lender Banco BPM on Tuesday stated the surprising takeover provide by home rival UniCredit doesn’t replicate its profitability.
The ten billion-euro ($10.52 billion) bid offered by UniCredit on Monday was not beforehand agreed and was delivered on “uncommon” phrases, the Banco BPM board of administrators stated in a CNBC-translated assertion.
It additionally fails to replicate Banco BPM’s profitability and potential for additional worth creation, the board added, flagging that the brisk timeline of a possible merger — anticipated “within the shortest time attainable” — would injury the lender’s authorized autonomy.
The Banco BPM bid comes two months after Unicredit, Italy’s second-largest financial institution, set sights on a attainable takeover of Germany’s Commerzbank.
Banco BPM’s board stated Unicredit’s provide exposes its stakeholders to those enlargement plans in Germany, which signify a “vital dilution of the current geographical publicity, as a substitute of a beautiful focus of Banco BPM in essentially the most dynamic areas of the nation and of the Euro zone.”
CNBC has reached out to UniCredit for remark.
On Monday, the financial institution provided to pay 6.657 euros for every share of Banco BPM — marking solely a slight premium on Friday’s shut worth of 6.644 euros — as a part of an all-stock deal.
This breaking information story is being up to date.