(Bloomberg) -- UniCredit SpA informed top officials in the Italian government and Banco BPM SpA Chairman about its intention to make a takeover bid for its smaller rival before announcing the move on Monday, people with knowledge of the matter said.
UniCredit Chief Executive Officer Andrea Orcel had a call last night with Banco BPM Chairman Massimo Tononi to inform him about the upcoming unsolicited all-share bid, the people said asking to not be named discussing private matters. The executive also informed government representatives in Rome, according to the people.
A longtime dealmaker, Orcel has repeatedly said he’ll evaluate strategic options and consider mergers and acquisitions provided they add value. Banco BPM, which has almost €200 billion of assets, has long been seen as a rational target for UniCredit to expand in the rich northern Lombardy region and add lucrative segments to its business. UniCredit was close to a move on Banco BPM in 2022, when a leak about a posible bid pushed up the smaller rival’s shares, scotching a deal.
Orcel’s latest move places him at the center of a swirl of activity in Italian banking. Earlier this month, Banco BPM bought a 5% stake in Banca Monte dei Paschi di Siena SpA when the Italian government sold part of its holding, and it’s also seeking to take over asset manager Anima Holding SpA. Anima itself acquired 3% of Monte Paschi in the recent government sale.
“With this acquisition of one of our historical targets, we reinforce our position in Italy while further enhancing the value we can create for all our stakeholders in that market as well as our shareholders.” Orcel said.
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