Latest news with #Orcel
Mint
a day ago
- Business
- Mint
UniCredit Wins Partial Support in Legal Battle Over BPM Deal
(Bloomberg) -- An Italian court accepted some of UniCredit SpA's requests to annul conditions imposed on its bid for Banco BPM SpA, handing a partial victory to Chief Executive Officer Andrea Orcel in his plan to create the country's largest lender. The Administrative Court of Lazio lifted two conditions imposed by Prime Minister Giorgia Meloni's government on the deal, according to a ruling published on Saturday on the court's website. The prescriptions that will be canceled relate to the Italian government's request to lower the loan-to-deposit ratio at Banco BPM and UniCredit in Italy for five years, and to not reduce the current level of Banco BPM and UniCredit's project finance portfolio in Italy. The court decision can be appealed by the parties. Spokespersons for UniCredit weren't immediately reachable for a comment and a spokesperson for the Italian government declined to comment. The ruling is a crucial decision for a landmark deal that has undermined a competing effort by the government to build a new banking group to rival UniCredit and Intesa Sanpaolo SpA. It is only one of several competing bids currently ongoing among Italy's banks. Even if the outcome is a partial win for UniCredit, it isn't clear if the bank will continue to pursue its bid for Banco BPM. The offer period expires on July 23, and Orcel has warned the deal 'might fall through.' UniCredit unveiled its unsolicited all-share offer for Banco BPM in November, when it became clear that the Italian government was looking to build a large banking group around the formerly bailed-out Banca Monte dei Paschi di Siena SpA. Banco BPM was seen as a potential candidate to merge with Monte Paschi. Orcel escalated the standoff with the Italian government in May, when UniCredit said it planned to file a claim with the administrative court over the wide-ranging conditions imposed on a potential deal. The bank said at the time it wanted the court 'to address the reservations existing on the legitimacy' of those restrictions. In a move that could also affect the endgame over Banco BPM, Credit Agricole SA said Friday it is seeking to further increase its stake in Banco BPM, reinforcing its position as a major shareholder and potentially complicating UniCredit's effort to acquire the Italian lender. More stories like this are available on
Mint
a day ago
- Business
- Mint
Credit Agricole Seeks Approval to Raise BPM Stake Over 20%
(Bloomberg) -- Credit Agricole SA is seeking to further increase its stake in Banco BPM SpA, reinforcing its position as a major shareholder and potentially complicating UniCredit SpA's effort to acquire the Italian lender. The French bank has requested authorization from the European Central Bank to raise its holding in Banco BPM above 20%, according to a statement late Friday. Credit Agricole currently owns 19.8% after increasing its stake earlier this year. The step comes as UniCredit continues to explore its options for a potential takeover, a process that has been hindered by regulatory conditions imposed by the Italian government. Those hurdles have prompted the bank, led by Andrea Orcel, to pursue legal action. A ruling on the conditions affecting UniCredit's bid is expected in the coming days, potentially influencing the chances of a deal. Orcel has previously warned he would likely walk away if Rome doesn't clarify its demands, which include exiting Russia, keeping loans at a certain level in relation to deposits, and preserving domestic investment at Banco BPM's asset manager, Anima Holding SpA. UniCredit launched its unsolicited takeover bid for Banco BPM last year, which spurred Credit Agricole to ramp up its shareholding. The ECB had previously approved Credit Agricole's request to increase its stake to just below 20% from 9.9%. Italy is Credit Agricole's largest market outside France, and the French bank has been Banco BPM's largest shareholder for some time, collaborating with the Italian lender on consumer credit and non-life insurance ventures. At the same time, Credit Agricole's asset management arm, Amundi SA, relies heavily on UniCredit for distribution in Italy. Credit Agricole said it 'intends to buy a sufficient number of shares' in Banco BPM to push its stake 'just above' 20%, but it doesn't intend 'to acquire or exercise control,' it said. UniCredit's Orcel said in February that he wasn't engaged in active discussions with Credit Agricole regarding the Banco BPM bid. --With assistance from Sonia Sirletti. (Updates with context throughout) More stories like this are available on
Yahoo
3 days ago
- Business
- Yahoo
Unicredit increases Commerzbank stake to 20% through derivatives
Italian lender UniCredit has increased its equity stake in Commerzbank to 20% by converting derivatives into stock. The move positions UniCredit as the largest shareholder of Commerzbank, surpassing the German government, which opposes a takeover. UniCredit aims to eventually convert its remaining 'synthetic position' to boost its equity holding to about 29%. According to Bloomberg, the decision is expected to intensify the standoff between UniCredit, led by CEO Andrea Orcel, and Berlin, which supports Commerzbank's efforts to remain independent. Orcel has indicated he may wait until 2027 before deciding on a full takeover offer, following a rally in the stock that made a potential deal more costly. Commerzbank has been working to enhance profitability and return money to shareholders to defend itself. 'Once again, this step has not been agreed with Commerzbank,' Commerzbank was quoted by the publication as saying. 'The adjustment of UniCredit's position has no impact on our strategic direction or our ambitions.' The bank stated that the change in UniCredit's stake will not impact its plans. Commerzbank's takeover would enable Orcel to create a new banking giant in Germany by merging it with UniCredit's German lender HVB. Such a move would also facilitate UniCredit's growth in Poland, where Commerzbank owns mBank. However, Orcel's plan has faced opposition from Berlin, which claimed it was unaware of his intentions when it initially sold a stake in Commerzbank to UniCredit in September. Orcel has refuted allegations of deception, stating that UniCredit was invited to purchase the stake sold by the Finance Ministry. The Italian suitor subsequently increased its stake through derivatives. The recent conversion of some derivatives into shares followed regulatory approval from the European Central Bank, German antitrust authorities, and the US Federal Reserve. In a letter dated 18 June addressed to German officials, including Finance Minister Lars Klingbeil and Chancellor Friedrich Merz, Orcel reiterated his push for a deal that he claims would create a European banking champion. Klingbeil responded by urging Orcel to direct any proposals to Commerzbank's management and reaffirmed the government's support for the bank's independence, emphasising it should not be the target of an unfriendly takeover. UniCredit is also pursuing domestic competitor Banco BPM, where the Italian government has imposed stringent conditions on a potential takeover. "Unicredit increases Commerzbank stake to 20% through derivatives " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
UniCredit gets to 20% equity stake in Commerzbank after derivatives conversion
MILAN (Reuters) -Italy's second biggest bank UniCredit owns an equity stake of around 20%, with corresponding voting rights, in Commerzbank after converting into shares derivatives which gives it an overall 29% holding in its German rival. UniCredit first emerged as the biggest private investor in Commerzbank in September, meeting stark opposition from Germany to full takeover plans. Defying Berlin, UniCredit increased its position in December by buying derivative contracts. It secured European Central Bank clearance earlier this year to get to a 29.9% holding. The Milanese bank said it had converted into shares an around 10% Commerzbank stake which it had until now held in derivatives, getting to a roughly 20% voting stake. "UniCredit plans to convert into shares its remaining synthetic position of around 9% in due time, getting to an around 29% voting stake in Commerzbank," it said. The moves comes after Chief Executive Andrea Orcel wrote to the new German government calling for talks over what UniCredit should do with the Commerzbank investment. Orcel has advocated a merger of Commerzbank and UniCredit's German unit HVB as the best outcome for all stakeholders, provided a deal has broad support from all relevant parties. He has repeatedly said he could alternatively keep the Commerzbank stake as a financial investment, or sell it. In his most recent letter to the new German government, Orcel has said he wants to sit down with German authorities to find the best solution for all parties involved given UniCredit's Commerzbank investment, were Berlin to continue opposing a merger. "UniCredit is Commerzbank's leading investor," it said in the statement on Tuesday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
04-07-2025
- Business
- Business Recorder
Commerzbank official tells UniCredit CEO to sell and go home
FRANKFURT: UniCredit's recent push for a tie-up with Commerzbank has prompted calls by a top official of the German bank for the Italian lender's CEO, Andrea Orcel, to abandon the pursuit. With UniCredit continuing to face fierce resistance in Germany, Orcel last month sent a flurry of letters to German Chancellor Friedrich Merz and others, urging them to come to the table to discuss a deal. But the latest offensive, which only became public this week, has come up against steadfast resistance from Sascha Uebel, deputy chair of Commerzbank's supervisory board, adding to previous opposition from the German government and the bank's board since UniCredit's initial approach last September. 'His next step should be to sell his shares, take his profits and go home,' Uebel told Reuters on Friday. UniCredit, which last year bought a large stake in the Commerzbank and began to press for a merger, declined to comment. In his letters, Orcel wrote that a tie-up would be beneficial 'economically, socially and politically' and would create a new national banking champion for Germany. Orcel was also given short shrift by the Verdi labour union, which said its concerns had not been allayed, according to copies of their correspondence seen by Reuters. 'We are continuing to campaign against a merger and are in favour of an independent Commerzbank,' Verdi boss Frank Werneke wrote to Orcel in a response dated July 2.
