Banco BPM SpA, Italy’s third-largest bank, has rejected a €10 billion ($10.5 billion) takeover bid from UniCredit SpA, which aimed to create the country’s largest banking entity. Banco announced Tuesday that UniCredit’s offer undervalued its financial strength and future growth potential, adding that it intends to focus on its independent business strategy.
Offer Deemed “Unusual and Inadequate”
In a statement, Banco BPM criticized the bid, calling its conditions “unusual” and inadequate for reflecting the bank’s profitability and strategic opportunities. Banco also pointed to potential complications stemming from UniCredit’s recent attempts to increase its stake in Germany’s Commerzbank AG.
“These conditions are rather unusual for transactions of this kind and, in the opinion of the board, do not reflect in any way the underlying profitability and additional potential for value creation for Banco shareholders,” Banco said.
The bank highlighted its commitment to executing its 2023–2026 business plan, which includes a proposed acquisition of Anima Holding SpA, an Italian asset manager.
Banco BPM rejects Unicredit bid : Terms of the Bid
UniCredit’s offer comprised 0.175 newly issued shares at €6.657 per share for each of Banco’s 1.5 billion shares, representing only a 0.5% premium over Banco’s recent stock price. Banco argued that this valuation fails to account for its “outstanding financial performance,” which it said has been widely recognized by the market.