UniCredit CEO Orcel rushed to bid 10 billion euros for Banco BPM, facing market resistance.

From Investing.com: 2024-12-12 01:00:55

UniCredit CEO Orcel’s long-awaited plans to take over Banco BPM were rushed with a 10 billion euro bid after BPM’s M&A moves. BPM shares surged 12% after announcing a bid for Anima Holding and buying 5% of MPS. Orcel offered a 15% premium to BPM shareholders, facing market resistance.

Orcel may offer cash and meet with investors like Credit Agricole. Italy’s conservative government opposes the deal, preferring a BPM-MPS merger. Credit Agricole, BPM’s top shareholder, strengthened its position. UniCredit’s spokesperson warned against BPM-MPS merger. Italian takeover rules limit BPM’s defense options.

Orcel faces time constraints due to rising BPM share prices and government approval delays. UniCredit has 6.5 billion euros in excess cash for convincing BPM shareholders. The government can’t block the bid, but investment screening approval may prolong the process. Time constraints may impact UniCredit’s 15% M&A return pledge.



Read more at Investing.com: UniCredit’s Orcel was plotting bid before Banco BPM forced hand, sources say By Reuters