Rome is keeping a watchful eye on Crédit Agricole‘s potential move for Banco BPM, signaling its consent to the French bank’s exploration while carefully navigating the delicate balance of national interests.
While the Italian government has given Banque Verte a “green light” to proceed, this does not automatically translate into permission for a full-fledged counter-offer for control of Banco BPM. Unicredit is currently pursuing a public exchange offer for the Italian institution.
“It is also not excluded that the government will return to talking about golden power – that is, the special veto powers of the Treasury – although by law they are only permitted in the event of a ‘serious threat to national security’ – should the French bank really aspire to take over Banco Bpm to the point of taking control of it de jure or de facto,” sources reveal.
The government’s stance is further complicated by the perceived lack of transparency from Unicredit CEO Andrea Orcel. “What created irritation in political buildings was the reluctance of Andrea Orcel, CEO of Unicredit itself, to inform the ministers before announcing the offer on Banco Bpm,” government officials explained.
Preventive Moves and Confirmations
Unicredit, however, maintains a different perspective. Sources within the Milan-based bank suggest that Crédit Agricole’s interest in Banco BPM predates last Monday’s announcement. They believe Agricole’s move stems from disappointment over the lack of progress in a potential merger between Banco BPM and Monte dei Paschi, a scenario the Italian government had been exploring.
This unfolding drama highlights the complex geopolitical landscape of European banking, where national interests often intersect with market forces. As the situation evolves, all eyes will be on Rome and Paris to see how this delicate balancing act plays out.
unicredit CEO Andrea Orcel remains undeterred by Crédit Agricole’s recent move to increase its stake in Banca BPM, asserting that the French bank’s actions have no bearing on Unicredit’s own bid for the Italian lender.
Orcel’s confidence stems from his belief that Crédit agricole’s sudden acquisition of a 600 million euro position in Banca BPM,reportedly as last Monday,is implausible given the limited number of shares available on the market.This, he suggests, lends credence to his earlier decision to swiftly submit his offer for Banca BPM, effectively outmaneuvering the French bank.
“Unicredit’s top manager believes that Agricole’s move on Friday evening changes nothing,” a Unicredit spokesperson stated yesterday. ”We have always been ready to negotiate with Crédit Agricole, as this would have been necessary irrespective of the extent of their participation.”
The spokesperson further emphasized that Unicredit’s proposed financial metrics and the offer price for Banca BPM remain unchanged. However, Unicredit is awaiting Banca BPM’s 2024 financial results, due in March, to determine whether an adjustment to the offer is warranted.
Within Unicredit, there is a growing concern that Crédit Agricole’s move could potentially disadvantage Banca BPM’s existing shareholders, notably if it leads to an eventual merger with the French bank.
This latest growth adds another layer of complexity to the ongoing saga surrounding Banca BPM’s future. the battle for control of the Italian lender is heating up, with both Unicredit and Crédit Agricole vying for a dominant position.
## Interview: Rome Watchful as French bank Swoops in on banco BPM
**World-today-News.com Exclusive**
**World-Today-News.com:** We’re joined today by Professor Luigi Bianchi, a leading expert on Italian banking and finance, to discuss the recent developments surrounding Crédit Agricole’s interest in Banco BPM. Professor Bianchi, Rome has seemingly given a “green light” to Crédit Agricole to explore a potential acquisition. What does this actually mean in practice?
**Professor bianchi:** The Italian government’s stance is a delicate balancing act. While they haven’t outright blocked Crédit Agricole’s exploratory move, it doesn’t imply an automatic greenlight for a full-blown takeover bid. This is primarily because Unicredit is already in the process of making a public exchange offer for Banco BPM. The government is essentially saying they are aware of Crédit Agricole’s interest and won’t intervene promptly, but they are closely watching the situation unfold.
**World-Today-News.com:** There’s been talk about potential invocation of the “golden power” by the Italian government. Can you explain what this means and under what circumstances it might be used?
**Professor Bianchi:** The golden power is a special veto power held by the Italian Treasury. It essentially allows the government to block foreign acquisitions of strategic Italian assets if they perceive a “serious threat to national security.” While legally it can be invoked for a range of reasons, it’s typically reserved for situations involving critical infrastructure or industries deemed vital for national security.
**World-Today-news.com:** In this case, would Banco BPM be considered a “strategic asset” warranting the golden power’s use?
**Professor Bianchi:** That’s the million-dollar question. It’s unclear if the government would consider Banco BPM vital enough to invoke the golden power. Though, sources suggest that if Crédit Agricole aims for outright control of banco BPM, either de jure or de facto, the possibility of the golden power being used cannot be entirely ruled out.
**World-Today-News.com:** Adding another layer of complexity, we see reports about a lack of transparency from Unicredit CEO Andrea Orcel. How might this factor into the government’s decision-making process?
**Professor Bianchi:** Exactly. The government’s frustration with Unicredit CEO Andrea Orcel’s lack of transparency is palpable. This perceived lack of openness is raising concerns and perhaps complicating Unicredit’s bid. The government will be closely scrutinizing both Crédit Agricole’s intentions and Unicredit’s approach, expecting greater clarity from both parties moving forward.
**World-Today-news.com:** Professor Bianchi, thank you for sharing your valuable insights on this complex situation.
**Professor Bianchi:** My pleasure.
