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€1.39 -0.0  -2.2%

Last Trade - 18/09/20

Sector
Financials
Size
Mid Cap
Market Cap £1.92bn
Enterprise Value £14.88bn
Revenue £4.68bn
Position in Universe 95th / 721

Italian bank shares surge as Intesa bid fuels merger expectations

Mon 20th July, 2020 1:21pm
MILAN, July 20 (Reuters) - Shares in Italian banks surged on
Monday on expectations of more mergers after Intesa Sanpaolo
 ISP.MI  sweetened its bid last week for UBI Banca  UBI.MI ,
which is still resisting the offer.
    UBI stock was up 13% by 1115 GMT, as shareholders holding
18% of the bank said they would accept Intesa's revised offer
that valued its smaller rival at 4.2 billion euros ($4.8
billion).
    Shares in Banca Monte dei Paschi di Siena  BMPS.MI  were
also up, after it said last week it had appointed Mediobanca
 MDBI.MI  to advise on its strategic options.
    Shares in state-controlled Banco BPM  BAMI.MI , which
Reuters reported last month was a possible merger partner with
Monte dei Paschi, climbed 6.3%. The Treasury is set to sell its
stake in Banco BPM.  urn:newsml:reuters.com:*:nL8N2E65P1
    Intesa's decision to improve terms of its all-share offer
for UBI with a 0.57 euro per share cash sweetener, announced
after markets closed on Friday, added to expectations that the
deal to create the euro zone's seventh-largest bank would
succeed.  urn:newsml:reuters.com:*:nL8N2E761P
    The government has long pushed for consolidation in Italy's
fragmented banking sector but mergers have run into obstacles,
such as a reluctance by smaller banks, which often have a strong
regional base, to give up their independence.
    Rome daily Il Messaggero reported at the weekend that
UniCredit could be interested in a tie up. It said the bank's
Chief Executive Jean Pierre Mustier had met the head of Banco
BPM, Giuseppe Castagna. 
    But Mustier told Swiss newspaper Finanz und Wirtschaft
newspaper that Unicredit, whose shares were down 0.3%, had no
interest in mergers and would focus on other changes, such as
boosting remote banking services.
    UniCredit declined to comment. A spokeswoman for Banco BPM
said the bank's top management had reiterated the bank favoured
a standalone strategy.

    ($1 = 0.8728 euros)

 (Reporting by Andrea Mandalà and Gianluca Semeraro; Writing by
James Mackenzie; Editing by Edmund Blair)
 ((james.mackenzie@thomsonreuters.com; +39 02 66129533 ; Reuters
Messaging: Reuters Messaging
james.mackenzie.reuters.com@reuters.net))
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