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BAMI - Banco BPM SpA News Story

€1.24 -0.0  -2.6%

Last Trade - 10:26am

Mid Cap
Market Cap £1.73bn
Enterprise Value £9.48bn
Revenue £3.96bn
Position in Universe 101st / 721

BREAKINGVIEWS-Corona Capital: Virgin in Oz, UK splurge, Bank M&A

Mon 6th July, 2020 11:31am
(The authors are Reuters Breakingviews columnists. The opinions expressed are their own.) By Breakingviews columnists HONG KONG/LONDON/MILAN, July 6 (Reuters Breakingviews) - C orona Capital is a daily column updated throughout the day by Breakingviews columnists around the world with short, sharp pandemic-related insights. LATEST - Virgin Australia - UK spending splurge - Italian bank M&A PRE-FLIGHT TURBULENCE. With the ink barely dry on Bain Capital’s deal*:nL4N2E30NC to save Virgin Australia VAH.AX , the Boston buyout shop has already run into problems. The Australian Takeovers Panel said on Monday that Singapore’s Broad Peak Investment Advisers and Hong Kong’s Tor Investment Management, two of the bankrupt airline’s unsecured creditors, have applied to put forward an alternative rescue offer. The pair are also pushing for more information, including the terms of the Bain deal. Timing is of the essence. Administrator Deloitte warned last week that the airline, whose problems were compounded by coronavirus disruptions, won’t have enough funds to survive until an August meeting – when creditors will vote on the Bain deal. An interim financial lifeline is required. Whether the bondholders have a case or not, the disquiet creates new uncertainties around the rescue. (By Alec Macfarlane) SPLURGE AGAIN. UK finance minister Rishi Sunak is set to give the economy a further boost on Wednesday, and speculation abounds about his plans. The Guardian flagged a think tank’s proposal to give adults vouchers worth 500 pounds to spend in specific sectors, such as hospitality. That would do more for the economy than mailing out normal cheques, which can be saved. But there are better uses for government funds than giving money to those who are already well off. Helping young workers enter or stay in the labour force is a good idea. So financing more traineeships, as the finance ministry says Sunak will do, would be helpful. Giving homebuyers a tax break, as reported by The Times, might support the housing market. But delaying the measure until later this year could prompt potential buyers to defer purchases. Consumers will also be aware that today’s largesse will be matched by inevitable payback in the form of higher taxes*:nL8N2CPACZ. (By Swaha Pattanaik) PANDEMIC PRESSURE. The health crisis is adding urgency to a new round of Italian banking M&A, which formally kicked off on Monday with Intesa Sanpaolo’s ISP.MI all-share offer for reluctant target UBI Banca UBI.MI . After shedding nearly 200 billion euros of bad credit since 2015*:nL8N29S2MJ, local banks entered the emergency with cleaner balance sheets than in the euro zone crisis. Unfortunately, their dud loan problem is about to return. Up to 15.5% of Italian non-financial companies could go belly-up if a new wave of infections emerges, says local credit manager Cerved. This would result in higher provisions for bad debt, hitting local lenders’ already weak profitability. Teaming up to save on costs is the obvious solution. That’s why Banco BPM BAMI.MI*:nL8N2E8213 is considering a tie-up with state-controlled Banca Monte dei Paschi di Siena BMPS.MI . BPER Banca EMII.MI or Credit Agricole-controlled CAGR.PA Cariparma may also be tempted to shop around. Whether or not Intesa’s hostile takeover is successful, the consolidation ball is rolling. (By Lisa Jucca) On Twitter - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ BREAKINGVIEWS-Corona Capital: Quarantines, UK bailout, Drugs*:nL8N2EA1SW ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Peter Thal Larsen and Oliver Taslic)
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