Skip to Content
Global News Select

UniCredit in Exclusive Talks for Monte dei Paschi Operations

   By Mauro Orru 
 

UniCredit SpA will embark on exclusive talks for the potential acquisition of some operations of troubled lender Banca Monte dei Paschi di Siena SpA.

The Italian bank said late Thursday that it has agreed prerequisite terms for a deal with the Italian government, which has a roughly 64% stake in Monte dei Paschi and has committed to reprivatizing the bank by April next year.

UniCredit Chief Executive Andrea Orcel, who succeeded Jean Pierre Mustier at the helm of the bank earlier this year, said the agreement of prerequisites on capital neutrality, protection from legacy litigation and the exclusion of non-performing exposures from a potential transaction "has given us the basis to enter into an exclusive period of due diligence and negotiation."

"During the due diligence period, we will perform detailed analysis and assess whether we are able to design a transaction that can meet those agreed parameters. Then, and only then, will we have the elements to decide whether to proceed," Mr. Orcel said.

Monte dei Paschi, known as the world's oldest bank, has in recent years undergone a major overhaul that included state recapitalization, the disposal of billions in bad loans and job cuts.

A takeover of Monte dei Paschi or some of its operations would add around 3.9 million clients to UniCredit, EUR80 billion in customer loans, EUR87 billion in customer deposits, and EUR62 billion in assets under management.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

July 30, 2021 02:50 ET (06:50 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.