Italy’s BPM asks market watchdog to guard stakeholders after UniCredit bid

MILAN (Reuters) -Italy’s Banco BPM mentioned it has requested market watchdog Consob to undertake measures to guard the financial institution’s stakeholders and its bid for Anima, after rival UniCredit launched its personal bid for BPM.

Banco BPM had complained earlier than that UniCredit’s 10 billion euro all-share bid jeopardised its buyout proposal for fund supervisor Anima.

The UniCredit transfer triggers a rule that stops managers of a takeover goal from doing something that would thwart the bid with out prior shareholder approval. This makes it laborious for BPM to lift the value of its provide for Anima.

Banco BPM’s board gathered on Tuesday to debate its technique over the UniCredit bid, which it has beforehand described as “uncommon”, saying the close to zero premium doesn’t replicate the worth of BPM.

In a press release late on Tuesday, Banco BPM mentioned it was “inappropriate and out of context” for UniCredit to say it had provided a 15% premium to the BPM share worth earlier than the Anima bid.

It argued that the premium determine ought to, in any case, be calculated as 4% and never 15%.

UniCredit didn’t reply to a Reuters request of remark.

“It isn’t clear why the share worth should not bear in mind the transactions the financial institution enacted beginning with the Anima bid,” Banco BPM CEO Giuseppe Castagna mentioned in a press release.

“Given quite a few feedback [by Unicredit (BIT:CRDI) CEO Andrea Orcel] we consider it doesn’t profit market transparency to set one worth for the bid and, on the similar time, trace that it might be revised,” he added.

In presenting the BPM provide, Orcel acknowledged that the value provided was near the market worth however added in different cases bidders had added a money part down the street.

Banco BPM mentioned that primarily based on Monday’s closing worth the UniCredit bid was now priced at a 14% low cost to the market worth.

Castagna additionally mentioned that whereas BPM was rooted within the north of Italy certainly one of Europe’s economic system strongest areas, UniCredit confronted uncertainties linked to its presence in Germany and Russia.

Orcel has mentioned BPM shareholders can be higher off holding UniCredit personal inventory as a result of it’s a extra resilient and diversified financial institution.

“We’re shocked by the frequent references to our alleged underperformance,” Castagna mentioned.

“And we do not perceive the calculations that lead (UniCredit) to say their complete distribution yield is double ours.”