Banco BPM, an Italian bank, is set to hire Citigroup and Lazard for guidance on addressing a takeover bid from rival UniCredit, which threatens its growth strategy, according to sources familiar with the situation.
The bank has rejected UniCredit's €10.1 billion ($10.7 billion) all-share offer, stating it undervalues Banco BPM and complicates its ongoing acquisition of Anima Holding, Italy's largest independent fund manager.
Citi and Lazard are already advising Banco BPM on the €1.6 billion Anima acquisition initiated on November 6, aimed at enhancing fee revenue amid declining interest rates. The two firms are expected to formally expand their mandate to include advice on the UniCredit bid.
Banco BPM holds a 22.4% stake in Anima and has recently acquired 5% of Monte dei Paschi di Siena (MPS) from the Italian state, while Anima purchased 3%. The Italian Treasury views a merger with Banco BPM as a potential resolution for MPS, which was bailed out in 2017 and must eventually return to private ownership in compliance with EU state aid regulations.
UniCredit CEO Andrea Orcel emphasized the necessity for his bank to remain competitive as domestic consolidation intensifies. A prior bid for Banco BPM was prepared in 2022 but was ultimately withdrawn.
Banco BPM's shares were stable at €7.484 at 1552 GMT, significantly above UniCredit's offer price of €6.657 based on the share swap ratio.