Banco BPM SpA branch in Milan, Italy, on Friday, November 15, 2024.
Bloomberg | Bloomberg | Getty Images
Italian lender Banco BBM On Tuesday he said an unexpected takeover bid by a local rival unicredit It does not reflect its profitability.
The €10 billion ($10.52 billion) offer made by UniCredit on Monday was not previously agreed upon and was delivered on “unusual” terms, Banco BPM's board said in a translated statement to CNBC.
It also does not reflect Banco BPM's profitability and potential for further value creation, the board added, noting that the rapid timeline for a potential merger – expected “in the shortest possible time” – would compromise the lender's legal independence.
Banco BPM's offer comes two months after Unicredit, Italy's second-largest bank, set its sights on a potential takeover of Germany's Commerzbank.
Banco BPM's board said Unicredit's offer exposes stakeholders to these expansion plans in Germany, which represent “a significant dilution of the existing geographic exposure, rather than an attractive focus for Banco BPM in the more dynamic regions of the country and the euro area.”
CNBC has reached out to UniCredit for comment.
The bank on Monday offered to pay €6,657 per share in Banco BPM – representing only a slight premium to Friday's closing price of €6,644 – as part of an all-share deal.
This breaking news story is being updated.
