Bankers in Italy are convening at the annual Assiom Forex conference in Turin to explore the future of their sector, which is undergoing significant consolidation as financial institutions aim to utilize excess capital and diversify their revenue streams in anticipation of declining interest rates. The wave of mergers and acquisitions began in early November when Banco BPM SpA initiated a bid for asset manager Anima Holding SpA, only to find itself targeted shortly thereafter by rival UniCredit SpA. Additionally, Banca Monte dei Paschi di Siena SpA has proposed acquiring competitor Mediobanca SpA, while BPER Banca SpA from Modena made an unsolicited all-share offer for Banca Popolare di Sondrio SpA earlier this month.
Banco BPM is scheduled to engage with investors in Paris and Milan after establishing new revenue and profit targets for the upcoming years, as it seeks to counter UniCredit’s unsolicited takeover proposal, according to Chairman Massimo Tononi. He emphasized that the current market conditions are not favorable for pursuing merger discussions with UniCredit, given the trading levels of Banco BPM shares. Since UniCredit’s €10 billion bid in November, Banco BPM’s shares have surged by 25%, resulting in a valuation of €13.3 billion. Tononi expressed confidence that the value generated by the bank in recent years will persuade Credit Agricole SA, Banco BPM’s largest investor, to continue supporting its status as an independent entity.
