UniCredit and Credit Agricole's Stake in Banco BPM

By Valentina Za
MILAN (Reuters) – UniCredit is prepared to engage with Credit Agricole, following the French bank's increase of its potential stake in Unicredit's prospective acquisition target, Banco BPM.

Credit Agricole announced on Friday that it entered derivatives to boost its stake in Banco BPM from 9.9% to 15%, pending approval from the European Central Bank.

A spokesperson from UniCredit stated on LinkedIn, "Yesterday's news about Credit Agricole's increased stake in BPM changes nothing for UniCredit. We were always prepared to negotiate with CA, as this would have been necessary regardless of their shareholding size."

Sources familiar with Credit Agricole's strategy revealed that the French bank aims to safeguard the commercial partnerships that facilitate its product sales in Italy. Despite its increased stake, Credit Agricole has excluded the possibility of fully acquiring BPM, in which it is currently the largest shareholder.

The UniCredit spokesperson highlighted that UniCredit's initiative has complicated the investment for Credit Agricole, suggesting that BPM shareholders should be cautious about this development.

Last month, UniCredit publicly launched a €10 billion ($11 billion) unsolicited share bid for Banco BPM, disrupting the Italian government's attempts to facilitate a merger between BPM and state-backed Monte dei Paschi di Siena. Both banks plan to partner with Anima Holding, which is in the midst of being acquired by Banco BPM.

Sources informed Reuters that UniCredit received informal backing from the Italian government before announcing its increased stake in Banco BPM. The spokesperson warned BPM shareholders to be vigilant regarding potential mergers involving BPM with either Credit Agricole Italia or Monte dei Paschi, emphasizing the risk of diminished shareholder value.

Credit Agricole's options may entail either merging BPM with Credit Agricole Italia under terms favorable to Credit Agricole or confronting a complex combination with Monte dei Paschi, both of which could be detrimental to BPM's shareholders.

($1 = 0.9463 euros)