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Bond Market News
Banco BPM Formally Rejects UniCredit’s Takeover Offer Citing Undervaluation, Unfavorable Terms
April 25, 2025
Banco BPM has formally rejected UniCredit’s €13bn ($14.8bn) takeover offer, citing undervaluation and unfavorable terms for its shareholders. UniCredit had earlier proposed an all-share bid offering 0.175 of its new shares for each BPM share, representing a 9% discount to BPM’s current market price. Banco BPM’s board deemed the offer hostile, arguing that it lacked a premium and would result in BPM shareholders holding only a 14% stake in the combined entity, despite contributing 18% to projected 2027 profits. Additionally, Banco BPM expressed concerns over unmet conditions in UniCredit’s proposal and criticized the lack of clarity regarding UniCredit’s intentions. The Italian government has imposed conditions on the bid, including requirements related to UniCredit’s operations in Russia and domestic lending ratios, which UniCredit claims could hinder its strategic flexibility. UniCredit’s attempts to acquire Banco BPM comes on the back of the latter’s strong presence in Lombardy, a region where UniCredit seeks to expand its market share.
Dollar bonds of UniCredit and Banco BPM were trading stable across the curve.
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