UniCredit Considers Improving Bid for Banco BPM

MILAN (Reuters) – UniCredit has until March to evaluate an improved takeover bid for Banco BPM, according to CEO Andrea Orcel during an investor call.

UniCredit declined to comment further on the matter.

With plans for a potential move on Commerzbank on hold due to political uncertainties and German rules compelling cash payments if UniCredit bids again after acquiring over 5% ownership, Orcel is focusing on a smaller domestic competitor, Banco BPM.

Banco BPM rejected UniCredit's all-share offer, criticizing the 0.5% premium in the stock ratio as inadequate and not reflective of the merger's benefits or the acquisition of Anima Holding.

Banco BPM claimed UniCredit's approach hinders its Anima bid due to takeover rules in Italy that prevent it from raising the bid without prior shareholder approval.

Orcel acknowledged that UniCredit's 10 billion euro bid price is close to market value but noted other bidders often increase offers with cash elements.

UniCredit must file the official BPM offer document with the market regulator Consob by mid-December. Currently, the offer is non-binding, and the deadline for price adjustments is also in March, coinciding with a shareholder meeting called for April 10 to approve the share issue for the BPM bid.

Orcel has emphasized strict criteria for any merger or acquisition, aiming to maintain the dividend per share trajectory despite new share issuance to fund the deal.

Since 2021, UniCredit has maximized capital generation under Orcel and has a surplus of 6.5 billion euros available to support its M&A strategy and reward shareholders.

The current bid indicates a 10% discount to Banco BPM's latest closing price, amounting to approximately 1 billion euros in value.