Unipol may take stake in BMPS – report (translated)
Unipol, the listed Italian financial services group, could take a stake in BMPS, the listed Italian bank, Italian language daily Il Sole 24 Ore reported. The report cited financial sources who said that Unipol could take part in the data room for BMPS' recapitalisation after BMPS presents its new business plan on 24 October.
Unipol would have to find the business plan credible in order to participate in the recapitalisation. The report said that one of the underlying motives for taking a stake in BMPS would be for Unipol to merge Unipol Banca, its lending arm, with BMPS.
A report in Italian language daily Il Corriere della Sera claimed that the Kuwait Investment Authority (KIA) is also looking at the dossier.
An unsourced report in Italian language daily Il Messaggero said that the business plan is likely to have targets of ROE of 10-11% and a profit of EUR 1bn by 2019.
The report also claimed that the Qatar Investment Authority (QIA) has hired Morgan Stanley to advise it on taking part in BMPS' recapitalisation while the Abu Dhabi Investment Authority (ADIA) has hired Rothschild.
Chinese investors are also interested in the recapitalisation and are believed to have hired an international investment bank on the matter, the report said.
All the reports noted that a number of private equity firms backing an alternative recapitalisation by Italian banker Corrado Passera are also likely to take part in the due diligence process. The report said that among the private equity firms believed to be taking part are Warburg Pincus, General Atlantic, Atlas Capital and BC Partners
Il Sole article sourced from print copy: page 25
Il Messaggero article sourced from print copy: page 21
Il Corriere della Sera article sourced from print copy page 40