American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

UniCredit sets March deadline for Banco BPM takeover bid

by admin December 5, 2024
December 5, 2024
UniCredit sets March deadline for Banco BPM takeover bid

UniCredit CEO Andrea Orcel has revealed a crucial deadline in the ongoing pursuit of Banco BPM: March.

Speaking during a Wednesday investor call, Orcel indicated that the bank has until then to consider improving its takeover bid, according to a report in Reuters that cited a source familiar with the call.

However, UniCredit hasn’t yet issued a statement on the matter.

UniCredit’s strategic choices

This timeline emerges against a backdrop of strategic maneuvering for UniCredit.

A potential bid for Commerzbank remains on hold, hampered by a German regulatory hurdle requiring cash payment for acquisitions within six months of exceeding a 5% ownership threshold, coupled with the current political climate.

Consequently, Orcel’s focus has shifted to a domestic target: Banco BPM.

The Banco BPM-UniCredit standoff

Banco BPM has rejected UniCredit’s all-share offer, citing the meager 0.5% premium as insufficient to reflect the merger’s benefits and the value of its acquisition of Anima Holding.

According to reports, Banco BPM further argues that UniCredit’s bid hinders its own Anima bid, preventing it from raising the offer price without prior shareholder approval due to Italian takeover regulations.

Orcel acknowledged that the €10 billion BPM bid is close to the current market price, noting that other bidders often incorporate cash elements at later stages.

Crucial deadlines for UniCredit

UniCredit must formally submit its offer documents to the Italian market regulator, Consob, by mid-December. Currently, the offer is non-binding.

Once submitted to Consob, a minimum price will be established, with room for potential increases until the March deadline.

This deadline is directly tied to UniCredit’s shareholder meeting scheduled for April 10th, designed to approve the share issuance necessary to finance the Banco BPM acquisition.

Deep pockets, big plans: UniCredit’s financial power play

Orcel, known for his stringent M&A criteria, aims to maintain the bank’s dividend per share trajectory despite the need for new share issuance.

UniCredit, having undergone restructuring and capital optimization under Orcel’s leadership since 2021, possesses €6.5 billion in excess capital—resources that can be deployed for M&A activity and shareholder returns.

This significant financial flexibility underpins their pursuit of Banco BPM, even with the current offer implying a €1 billion discount (approximately 10%) to Banco BPM’s Wednesday closing price.

The post UniCredit sets March deadline for Banco BPM takeover bid appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Coinbase stock vs CONY ETF: Better buy as Bitcoin hits $100k?
next post
Marvell stock analysis: overvalued or undervalued?

Related Posts

European stocks rally 8% as US tariff delay...

April 10, 2025

ZIM stock price forms a death cross as...

April 22, 2025

Sensex index slowly forms a bullish pattern, signaling...

March 31, 2025

Salesforce stock gets pricey as CRM hits ATH:...

November 12, 2024

Asian stocks close mostly higher: Nikkei up 0.41%,...

May 8, 2025

Tilray stock price crashes below $1: buy the...

February 18, 2025

Americans who moved abroad say this big expense...

August 8, 2024

Ubisoft shares surge as Tencent invests in new...

March 28, 2025

Donald Trump set to receive $1.25 billion worth...

April 24, 2024

China to recapitalize major banks as profits sink...

September 24, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved