Unicredit to take “time” steps on BPM after the court ruling

In a ruling published on Saturday, the Administrative Court of Lazio was canceled by the government with confirmation of the condition that Unicredit out of its Russian work, which maintains the local investments that have not changed in the newly obtained Banco BPM company in SPA. CEO Andrea Orzel previously said these demands could stop the acquisition plan.

Unicredit welcomed the decision as “unambiguous evidence that the way in which gold energy was used was illegal”, referring to the process that allows the authorities to prevent or impose conditions on transactions that involve strategic assets. “Unicredit will now evaluate all relevant steps in time.”

Orcel faces a narrow time schedule, with the end of the presentation period on July 23. The CEO is scheduled to receive support from the European Union, who is expected to reprimand the government in Rome and ask about the way it interfered in the deal. But the Credit Agricole SA competition, which was announced shortly before the referee, to increase its share in Banco BPM.

Banco BPM shares increased by 2.4 % at 9:55 am in Milan on Monday, while Unicredit fell 0.5 %.

Unicredit revealed its unwanted offer to all the participation of Banco BPM in November with conditions that do not provide almost any bonus on the Banco BPM closure price before the offer. It currently means Banco BPM at about 14.6 billion euros ($ 17 billion), while the bank has a market value of 15.2 billion euros, starting from Friday. This indicates that the shareholders expect the largest lender to enhance its width of 0.166 shares recently issued to each of them in the smaller competitor.

The deal disturbed the government in Rome, and has paid Agricole credit – the largest contributor to Banco BPM – to raise its share to better defend its interests in Italy. The French lender has commercial agreements with both Italian lenders and seeks to defend its interest in its largest market outside France.

Credit Agricole currently has 19.8 % of Banco BPM after increasing its share earlier this year. She said late on Friday that she had requested a mandate from the European Central Bank to lift his detention above 20 %. Do not intend to “get or exercise”.

The court ruling was welcomed by all parties involved in the deal. Banco BPM said on Saturday that the results of the court confirm the legitimacy of the government’s conditions and urgedit to clarify its intention to the continuous presentation. A government official said that the decision largely confirms the legitimacy and structure of medical prescriptions.

“It is often misleading” by Banco BPM to discredit its reputation, it may have been deprived of BPM shareholders of the ability to improve the terms of the offer if the process is organized, “said unicredit, along with the” illegal use “of the golden authority.

The Unicredit BPM’s pursuit is just one of the many overlapping deals that are currently taking place between Italy banks. This show was made when it became clear that the government in Rome was looking to build a large banking group about the Banca Monte Dei Paschi Di Siena Resort, where Banco BPM is seen as a potential candidate for merge.

After Unicredit moves, the government now supports a deal between Monte Paschi and Mediobanca SPA. The period of this acquisition, which is worth about 15 billion euros, begins on Monday. On Friday, Mediobanca repeated her opposition, saying that the offer is very low and that the deal lacked the logical basis.