(Finance) – BPM desk is evaluating two options to defend against the takeover on the part of UniCredit: Raise its financial goals as a standalone defense or reach a merger deal with Banca Monte dei Paschi di Siena. Bloomberg writes, citing people familiar with the matter.
The institute led by Giuseppe Castagna is reportedly studying the possibility of increasing its profitability target and increase the amount of money with which it remunerates investorswith the aim of convincing shareholders to reject UniCredit’s offer, according to the leak. The other option that Banco BPM is analyzing internally is a merger with Monte Paschi, which would only happen if it has the support of Monte Paschi’s management and its main investors.
If Banco BPM were to seek a merger deal with Monte Paschi, it would try to get it before the end of Januaryto formally present the offer to Banco BPM investors ahead of UniCredit’s annual general meeting on 10 April. Furthermore, the bank is unlikely to present its defense strategy before the annual results on February 7.