Proposed Mergers May Reshape Italy’s Top Tier of Banks
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San Paolo and Unicredito Italiano--Italy’s largest and third-largest banks, respectively--said Sunday that they would pursue mergers, which would reshape the top tier of the country’s banking system.
Unicredito Italiano said it would propose a merger to Banca Commerciale Italiana. If BCI accepts, the deal would create Italy’s largest bank, with assets of about $286 billion. Unicredito said it would offer eight ordinary shares for every five of BCI’s. Unicredito’s board authorized the offer after “doing everything to assure that it was a friendly offer,” the bank said.
There was no immediate response from BCI.
Hours after that bid was announced, current leading bank San Paolo said it would pursue a merger with Banca di Roma.
Their merger would produce a bank only slightly smaller than the Unicredito-BCI combination.
BCI is Italy’s fourth-largest bank; Banca di Roma is the fifth-largest.
Merger talks among banks throughout Europe have become commonplace in anticipation of European monetary union.
Banca di Roma broke off talks with BCI two weeks ago and allowed a Dutch holding company to take a stake, setting off this weekend’s merger talks.
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