BPM has UBI Banca and Banco Popolare as likeliest candidates for merger
Banca Popolare di Milano (BPM), the listed Italian bank, has listed rivals UBI Banca and Banco Popolare as the likeliest candidates for ts merger partners to three, Il Messaggero reported. The Italian language daily said in a unsourced report that BPM no longer sees Carige as a candidate and is also considering pursuing a standalone strategy.
The item added that UBI Banca is proposing a pure merger via incorporation. The report said that this operation would create Italy's third largest banking group with EUR 165bn in assets.
The report said that the Banco Popolare offer is similar, but it is offering for the headquarters of the merged bank to be in Milan while Verona, Banco Popolare's home city, would have operational headquarters. The report said that this contrasted with UBI's offer, which would have the merged entity's headquarters in UBI's home city of Bergamo while an operational headquarters would be set up in Milan.
The item added that one of the factors that make come into play is that Banco Popolare has more NPLs at EUR 14.4bn to UBI's EUR 9.8bn.
Il Messaggero