(Bloomberg) — Banco BPM SpA is set to discuss the surprise takeover bid from UniCredit SpA, with investors waiting for a response to a move that has rattled financial markets and the government in Rome.
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The board of directors of the regional Italian lender is convening Tuesday for a previously scheduled session, according to people familiar with the matter. The meeting is all but certain to focus on the unsolicited bid unveiled the previous day, said the people, asking for anonymity to discuss internal plans.
A representative for Banco BPM declined to comment.
UniCredit Chief Executive Officer Andrea Orcel on Monday launched an all-stock offer valuing Banco BPM at €6.657 a share, or about €10.1 billion ($10.6 billion) based on Friday’s prices. Shares of Banco BPM rose on Monday to close above €7, indicating investors see potential for the bid to be raised.
A combination of UniCredit with Banco BPM “would undoubtedly have significant industrial value,” Equita analyst Andrea Lisi said in a note on Monday. “However, we recognize that the premium is limited.”
Orcel has long had Banco BPM in his sights, and the offer timing may have been driven by recent deals that could create a new force in Italian banking. Banco BPM bought a 5% stake in Banca Monte dei Paschi di Siena SpA from the government, and it’s also seeking to take over asset manager Anima Holding SpA, which owns another roughly 4% in Monte Paschi.
The government in Rome is seeking to create a major banking group around Monte Paschi to rival UniCredit and Intesa Sanpaolo SpA, the two dominant firms. Orcel’s move on Banco BPM complicates that effort.
Meantime, French bank Credit Agricole may have increased its stake in Banco BPM to 19% from 9% through equity swaps, newspaper Il Sole 24 Ore reported Tuesday, citing “rumors circulating in trading rooms.”
Credit Agricole hasn’t asked regulators for authorization to exceed a 10% stake in Banco BPM, a spokeswoman for the French bank said in a call with Bloomberg.
Orcel informed Banco BPM chairman Massimo Tononi about his intention to launch a bid before announcing the move on Monday, Bloomberg has reported.
UniCredit’s takeover bid on rival Banco BPM can be defined as hostile, board member Mauro Paoloni said, according to an Ansa newswire report on Tuesday. When asked if the approach qualifies as hostile, Paoloni answered “yes” as he was on his way to the board meeting, according to the report.
