(Bloomberg) -- Banco BPM SpA is set to discuss the surprise takeover bid from UniCredit SpA, with investors waiting for a response to a move that has rattled the Italian government and complicated an effort to build a new banking group in the country.
The board of directors of the regional Italian lender is convening Tuesday for a previously scheduled session, according to people familiar with the matter. The meeting is all but certain to focus on the unsolicited bid unveiled the previous day, said the people, asking for anonymity to discuss internal plans.
A representative for Banco BPM declined to comment.
UniCredit Chief Executive Officer Andrea Orcel has long had Banco BPM in his sights, but the offer timing may have been driven by recent deals that could create a new force in Italian banking. The government in Rome is seeking to form a major banking group around Banca Monte dei Paschi di Siena SpA to rival UniCredit and Intesa Sanpaolo SpA, the two dominant firms. Orcel’s move complicates that effort.
UniCredit’s all-stock offer, disclosed Monday, values Banco BPM at €6.657 a share, or about €10.1 billion ($10.6 billion) based on Friday’s prices. Banco BPM extended gains on Tuesday, rising 1% to €7.08 at 11:30 a.m., an indication investors see potential for the bid to be raised.
A combination of the two banks “would undoubtedly have significant industrial value,” Equita analyst Andrea Lisi said in a note on Monday. “However, we recognize that the premium is limited.”
Orcel’s bid comes after Banco BPM bought a 5% stake in Monte Paschi from the government. That stake would rise if Banco BPM succeeds in acquiring asset manager Anima Holding SpA, which also owns shares in Monte Paschi.
Banco BPM’s investors include Credit Agricole SA, with a stake of around 9%, according to data compiled by Bloomberg. The French lender may have increased its holding to 19% through equity swaps, newspaper Il Sole 24 Ore reported Tuesday, citing “rumors circulating in trading rooms.”
Credit Agricole hasn’t asked regulators for authorization to own more than 10% in Banco BPM, a spokeswoman for the French bank said.
Orcel informed Banco BPM chairman Massimo Tononi about his intention to launch a bid before announcing the move on Monday, Bloomberg has reported.
One Banco BPM board member has already signaled opposition to a deal. When asked if the approach qualifies as hostile, board member Mauro Paoloni replied “yes,” according to an Ansa newswire.
Milan, Italy-headquartered UniCredit is simultaneously considering an acquisition of Frankfurt, Germany-based Commerzbank AG, though the potential deal faces stiff government opposition. Orcel said Monday the chances of it happening have dropped.
--With assistance from Flavia Rotondi.
(Updates share reaction in fifth paragraph. A previous version of this story corrected the unit used in the chart.)
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