In addition to credit institutions, the Group also includes numerous product companies (e.g. Today BPER Banca Group is a strong union of two commercial banks, both of which are autonomous and well rooted in the various territories where they belong. Reliability, transparency, and professionalism are the basic values that inspire BPER Group's "way of banking." It favors small household savings and business resources in all contexts, considering credit as a tool for development for both families and/or businesses and the local area. Its basic objective is that of creating a reality in which each bank can take advantage of belonging to a large banking group while simultaneously maintaining operational autonomy and its local roots. BPER HOME BANKING FULLWith a cost-to-income ratio of 93%, Carige would "need the full attention of management and time" to be restructured once acquired, Intesa said.īPER worked with Rothschild, while KMPG and Deutsche Bank advised FITD.BPER Banca Group was founded in 1992 with an initiative from BPER Banca. "The potential BPER-Carige deal would move further away the possibility of an integration between BPER and Banco BPM," Intesa Sanpaolo analysts said. The Italian arm of France's Credit Agricole last year bought small peer Creval for €1 billion and in 2017 clinched a rescue deal with FITD for three failing banks.īPER has been steered onto an expansion path by its leading shareholder, insurer UnipolSAI, and last year boosted its assets by 40% by buying branches sold as part of Intesa Sanpaolo's takeover of UBI.Ĭarige would further lift BPER's assets to about €155 billion, making it Italy's fourth biggest bank and a more direct competitor to Banco BPM, the third biggest and a longstanding possible merger partner. Shares in Carige closed 1% up at €0.894, having gained more than a third since mid-December, when news of interest from BPER and Credit Agricole Italia first emerged.īPER, Italy's fifth-largest bank, was the favoured bidder, with the country's authorities keen on tie-ups between mid-tier lenders while some FITD members were wary of further expansion by Credit Agricole Italia, the largest foreign lender in the country. Thanks to the tax incentives, BPER still expects the deal to have a neutral impact on its capital reserves and significantly boost earnings per share from 2023, it said.īPER would then buy out remaining investors in Carige at €0.80 a share. Suitors BPER, Credit Agricole Italia and US fund Cerberus had all offered a token €1 and asked for cash to cover restructuring and clean-up costs.Īfter initially demanding a €1 billion capital injection, which FITD rejected because it topped the €700m it could spend, BPER said it had cut the request to €530m. Italian banks spent €600m to rescue Carige through the FITD fund, which must now pump more money into it to clinch a sale. The Italian banking fund that owns Carige after a 2019 rescue has picked BPER Banca to negotiate a sale it hopes will end a seven-year crisis at the ailing lender.Ĭarige and bigger rival Monte dei Paschi di Siena are the two main banking headaches Italy must tackle to end a restructuring started in 2015 that has cost healthy lenders more than €10 billion.Īfter failing last year to sell state-owned Monte dei Paschi to heavyweight UniCredit, Italy has tabled €380m in gross tax incentives to ease Carige's disposal.įollowing a meeting of its steering committee yesterday, the FITD fund that owns 80% of Carige said that BPER would have four weeks to study the target's financial data to agree on a sale no later than February 15.
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