Banco BPM Rejects UniCredit's Hostile Takeover Bid, Citing True Value and Employment Concerns
Italy's fourth-largest lender, Banco BPM, has firmly rejected a €10 billion hostile takeover bid from UniCredit, claiming that the offer fails to reflect the true potential and profitability of Banco BPM for its shareholders. In a statement released on Tuesday, the bank’s board expressed that the offer does not account for the significant advancements and extraordinary transactions recently announced, which are expected to bolster the bank’s value further.
The board emphasized that the takeover bid was unsolicited and reaffirmed their belief in Banco BPM's promising future. They indicated that the current industrial plan for 2023-2026 was on track and would soon be updated to better reflect the bank’s significant capabilities and objectives.
A primary concern raised by Banco BPM’s board is the potential impact of the takeover on employment and social issues, highlighting a fear of possible job losses due to cost-cutting synergies. UniCredit has estimated gross cost synergies of around €900 million, which amounts to over a third of Banco BPM's cost base. Banco BPM’s board responded with caution, indicating that such savings raise considerable concerns regarding the foreseeable repercussions on its workforce and overall social responsibility.
In their statement, the board pointed out that neither synergies related to costs nor revenue were appropriately valued in UniCredit's proposal. This reinforces Banco BPM’s assertion that their company holds much more intrinsic value than what is being offered in the takeover bid.
The rejection of UniCredit's bid signals ongoing tensions in Italy’s banking sector, as institutions navigate through a landscape marked by rapid changes and a need for strategic growth. As these discussions unfold, all eyes will remain on how both banks will proceed and the implications for shareholders, employees, and the broader economy.
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