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BAMI - Banco BPM SpA News Story

€1.34 0.1  5.8%

Last Trade - 24/09/20

Mid Cap
Market Cap £1.75bn
Enterprise Value £14.71bn
Revenue £4.68bn
Position in Universe 99th / 720

Italy's Banco BPM shares rise on merger expectations

Tue 11th August, 2020 4:14pm
MILAN, Aug 11 (Reuters) - Shares in Banco BPM  BAMI.MI 
surged on Tuesday on expectations that Italy's third-largest
bank could become involved a possible merger in a new round of
consolidation among the country's banks following Intesa
Sanpaolo's takeover of smaller rival UBI Banca.
    Banco BPM Chief Executive Giuseppe Castagna on Tuesday
reiterated in a newspaper interview that the Intesa  ISP.MI 
deal, creating Europe's eighth-biggest bank, had changed the
competitive scenario and that BPM was on the lookout for
possible merger opportunities.
    "Getting close to Intesa will be difficult given the gap
that's opened up in terms of size. But it's true that two or
three big banking groups would be necessary in the interests of
the Italian economy," he told business daily Il Sole 24 Ore.
    The remarks echoed comments he made last week when the bank
released its second quarter results.*:nL8N2F8899
    BPM's shares climbed 7% in light summer trading, making the
bank the biggest gainer on the blue chip FTSE index  .FTMIB  in
    Banco BPM has been tipped as a potential merger candidate
after Intesa strengthened its position in BPM's own home market
in the wealthy north of the country in what was the biggest bank
merger Italy has seen in years. 
    Castagna said there were no immediate plans for a merger and
he declined to comment when asked about market speculation over
a merger plan with UniCredit  CRDI.MI .
    People familiar with the matter have told Reuters some Banco
BPM shareholders would favour a tie-up with UniCredit, which has
come under pressure to do a deal since it is set to be overtaken
as Italy's biggest bank by the combined Intesa-UBI group.*:nL5N2F18D0
    Unicredit Chief Executive Jean-Pierre Mustier has ruled out
mergers saying he is focused on improving investor returns and
boosting UniCredit's share price.*:nL8N2F815J

 (Reporting by Andrea Mandalà; editing by Jane Merriman)
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