Italian banking group UniCredit will fight in court against the conditions set by the government for approving its bid to buy rival Banco BPM for more than €10 billion. UniCredit will appeal the government’s decision to the administrative court in the Lazio region and will also support the European Commission (EC) in reviewing the so-called golden power and its application by the Italian government. The bank announced this in a press release.
UniCredit vs. Italy: Dispute over state powers in acquisition
The so-called golden power in Italy refers to the government’s special powers to intervene in transactions involving companies operating in strategically important sectors. This power allows the government to approve transactions, set conditions, or veto them. The bank is responding to Rome’s decision last month, which set out several conditions that UniCredit would have to meet if it wanted to complete the acquisition. UniCredit criticized these conditions as unclear and potentially illegal, saying they could limit its ability to prudently manage the merged entity.
Italy’s regulator Consob suspended the offer for 30 days this week, giving UniCredit more time to deal with the requirements, Bloomberg reported. UniCredit chief Andrea Orcel has meanwhile begun talks with the government to clarify what it wants from him, the agency added.
UniCredit vs. Italy: Dispute over state powers in acquisition
The group also said today that it was waiving a provision in its offer that allowed it to withdraw after Banco BPM completed its acquisition of fund manager Anima Holding at a higher price than expected. BPM made an offer to buy Anima shortly before UniCredit bought its shares and managed to obtain shareholder approval and complete the transaction, Reuters reported.
In April, the German antitrust authority allowed UniCredit to increase its stake in German competitor Commerzbank to almost 30 percent. UniCredit already obtained similar approval from the European Central Bank (ECB) last month. The gradual increase in UniCredit’s stake in Commerzbank is fueling speculation about a complete takeover of the German bank. However, the Italian bank emphasized last December that the increase in its stake should currently be considered only an investment. In November, Orcel was still openly seeking a merger or acquisition.
Talks between the banks’ management took place, but no clear conclusion was reached. Moreover, the prospects for a possible takeover have long been met with resistance from German politicians and trade unions. The German bank’s management was also not in favor of the merger.
Source: Reuters
