New bank consolidation movement in Italy

Posted on Dec 15, 2019 2021 at 13:19

1 euro to save the last Italian bank in serious difficulty and create an embryo of a third banking pole. This is the offer of BPER Banca to take over Carige on the model of the rescue in 2017 of the two Venetian banks, Veneto Banca and Popolare di Vicenza, by Intesa San Paolo. Presented Tuesday evening, the non-binding offer is made to the deposit guarantee fund of Italian banks (FIDT), the main shareholder of Carige which holds 88% of its capital after having bailed it out in 2019.

It first provides for the recapitalization of the Genoese bank to the tune of 1 billion euros by the FIDT before the launch of a takeover bid on the 12% of the remaining capital at a price of 0.80 euros per share, which represents a premium of 29% from Monday’s closing price. A prospect of a merger which made the price of the two credit institutes jump by about 8%.

It would be the epilogue to the soap opera of Carige’s rescues. The bank had failed to carry out three capital increases in five years before its takeover in 2019 by FIDT. The Italian government had then also injected 1.3 billion euros to cover the costs associated with its bailout. From 2015 to 2019, he spent more than 10 billion euros in total to support the rescues of four Tuscan regional banks, two Venetian and Monte dei Paschi (BMPS).

Strengthen BPER and save Carige

The Bank of Modena BPER expects a response from FIDT by December 20 to sign a binding memorandum of understanding by December 31. Carige’s board is scheduled to meet on Wednesday and a FITD meeting is scheduled for Thursday.

Our interest is consistent with our objective of increasing our scope through targeted operations, she explains in a note. This would also make it possible to definitively resolve Carige’s difficulties while preserving its customers and shareholders. “. At the end of the operation, BPER would increase its customer base by 20% to 5 million customers and the new group, which would manage 150 billion euros in assets, would have more than 2,100 branches.

Following the failure of negotiations with UniCredit for the takeover of the Bank of Siena, the question of a further consolidation of the Italian banking sector is revived. BPER, in the event of a merger with Carige, could be at the origin of a third pole. She does not hide her interest in Banca Popolare di Sondrio (BPS) which is looking for a buyer.

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