Banco Bpm’s board of directors has expressed strong concerns regarding Unicredit’s offer for a merger, which involves estimated gross cost synergies of 900 million euros. The bank argues that these synergies represent more than a third of Banco Bpm’s cost base and could lead to significant adverse effects on employment and social stability. In a statement, Banco Bpm emphasized that these synergies, along with those related to revenue, are not adequately reflected in the terms of Unicredit’s offer, which the board asserts undervalues the bank’s potential and profitability.
The offer from Unicredit, led by CEO Andrea Orcel, is criticized by Banco Bpm for failing to reflect the full value and growth potential of the bank. The board reaffirmed that the offer was unsolicited and pointed out that the value of Banco Bpm is further strengthened by recent extraordinary operations, which will be incorporated into an updated industrial plan for 2023-2026. This plan, they argue, adds to the company’s already positive outlook and is expected to lead to higher objectives, some of which have already been communicated to the market.
Meanwhile, analysts at S&P have weighed in on the situation, suggesting that Unicredit may need to adjust its offer to make it more attractive to Banco Bpm’s shareholders. The proposed exchange ratio is seen as only slightly above the current market price, and S&P does not rule out the possibility of Unicredit raising its bid or other parties showing interest in acquiring Banco Bpm. The agency has pledged to closely monitor any developments in the ongoing negotiations.
