By Elena Vardon
Italy's UniCredit said it will assess whether to move forward with its takeover offer for smaller peer Banco BPM after the European Central Bank issued a negative view on the application of more lenient capital rules to BPM's acquisition of asset manager Anima.
Banco BPM, which became a takeover target from larger rival UniCredit in November weeks after its own bid for Anima, had been hoping to use the so-called "Danish Compromise" rules that allow for acquisitions of asset managers by banks through insurance subsidiaries to consume less capital.
UniCredit said late Thursday that the waiving of this directive could have negative implications for BPM's regulatory capital and possible repercussions on future growth and distributions, as well as its ability to provide credit.
"The ECB's position confirms the appropriateness of the premium implicit in UniCredit's offer for BPM and the appropriateness of the reference to market prices prior to the announcement of the Anima offer," Chief Executive Andrea Orcel said in a statement after its annual general meeting.
UniCredit's all-share offer, which included a 0.5% premium, was rejected by BPM which said the $10 billion-plus approach undervalued the bank.
UniCredit said 99.88% of its shareholders voted in favor of its takeover bid for BPM, and that all resolutions put forward were approved at the meeting.
Banco BPM said separately on Thursday that it will press ahead with its pursuit of Anima, which will be more costly without the application of the "Danish Compromise" rules but is a cornerstone of its midterm strategic plan.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
March 28, 2025 04:08 ET (08:08 GMT)
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