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France’s Crédit Agricole has increased its stake in Banco BPM in a move that will complicate UniCredit’s approach to the Italian lender.
Crédit Agricole, which is already Banco BPM’s largest shareholder, said on Friday it had entered into financial deals that will raise its stake in the lender from 9.9 percent to 15.1 percent. She added that she would seek approval from Italian regulators to own up to 19.99 percent of Banco BPM.
The French lender’s move, which mirrors UniCredit’s use of derivatives to build a surprise stake in Germany’s Commerzbank earlier this year, comes after Banco BPM rejected its Italian rival’s €10.1 billion takeover bid at the end of last month.
That approach marked UniCredit CEO Andre Orcel’s latest attempt to create a European banking champion. It also surprised Italian officials, coming just weeks after Banco BPM took a 5 percent stake in rival Italian lender Monte dei Paschi di Siena.
Italian Prime Minister Giorgia Meloni’s government had hoped that Banco BPM could spur consolidation in the country’s banking sector, potentially merging with MPS and BPER Banco, to compete with UniCredit and Intesa Sanpaolo, the country’s biggest lender.
Orcel and Crédit Agricole director Philippe Brassac were to meet to discuss a takeover bid for Banco BPM, according to one person familiar with the talks.
Banco BPM said last month, when it rejected UniCredit’s overture, that it remained “focused on implementing its business plan for 2023-2026. and to take over (asset manager) Anima”.
However, under Italy’s so-called passivity rule, as a takeover bid target, Banco BPM cannot buy further stakes in MPS or increase its takeover offer to more than €1 billion for Anima in the next six months. The rule is intended to prohibit target companies from making moves that could affect the outcome of a pending takeover bid.
The Italian government is looking for ways to help Banco BPM counter UniCredit’s approach, according to people familiar with the discussions. Italian Finance Minister Giancarlo Giorgetti told reporters last month that Rome could invoke its so-called golden powers, designed to block foreign takeovers of strategic national assets, to impose conditions on UniCredit’s bid to take over Banco BPM.
Last week, the government denied that it was considering passing an emergency decree to overcome Banco BPM’s passivity rule.
