UniCredit says it is ready to settle with Credit Agricole over Banco BPM By Reuters
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MILAN (Reuters) – UniCredit is ready to sit down with Credit Agricole (OTC:), a spokesman for the Italian bank said in a LinkedIn post after the French lender raised a potential stake in Unicredit (BIT:) in Banco’s target BPM. .
UniCredit’s bid for its junior partner Credit Agricole said on Friday it has entered into another deal that will increase its stake in BPM to 15% from 9.9% if the European Central Bank gives it the green light.
“Yesterday’s news about the increase in Credit Agricole’s shares in BPM does not change anything for UniCredit,” said a UniCredit spokesperson on LinkedIn.
“We were always ready to negotiate with CA, as this would be necessary regardless of the size of their shares.”
Sources with knowledge of the French bank’s strategy told Reuters Credit Agricole is focused on securing commercial relationships that allow it to sell its products in Italy. Credit Agricole has decided not to fully buy BPM, where it is the single largest shareholder.
“UniCredit’s initial move made Credit Agricole’s investment more expensive and more difficult. BPM shareholders should not accept this development,” said a UniCredit spokesperson.
UniCredit last month sought a seat at the Italian bank merger table by launching an unsolicited bid for Banco BPM worth 10 billion euros ($11 billion).
The move derailed the Rome government’s plans to merge BPM with state-backed Monte dei Paschi di Siena. Both banks are affiliated with fund manager Anima Holding, Banco BPM which is in the process of taking over.
On Saturday, sources told Reuters that Credit Agricole received informal support from the Rome government before announcing an increase in its stake in Banco BPM.
A UniCredit spokesman warned BPM shareholders that they should be wary of a possible combination of BPM with the Italian business of Credit Agricole, or of any attempt to merge BPM with Monte dei Paschi.
The Monte dei Paschi bid is a potential defensive strategy for BPM, which dismissed UniCredit’s offer as too cheap.
“Credit Agricole’s options are either to merge BPM with Credit Agricole Italia (on attractive terms for Credit Agricole) or face a complex merger with Monte dei Paschi. Both routes will harm BPM’s shareholder value,” said a UniCredit spokesperson. ($1 = 0.9463 euros)
