Italian banks should be predators not prey in M&A wave, economy minister says

Italian Banks Should Lead, Not Follow, in Cross-Border M&A, Says Minister

Italian Banking Sector and Cross-Border Mergers & Acquisitions

Minister Giorgetti's Stance on M&A Activity

ROME, Oct 16 (Reuters) - Italian banks should be predators rather than prey, Economy Minister Giancarlo Giorgetti said on Friday, commenting on the M&A wave reshaping the banking sectors in Italy and Germany.

Comments on UniCredit and Commerzbank Deal

• Speaking to reporters on the sidelines of the G7 and G20 meetings in Bangkok, Thailand, Giorgetti welcomed ECB approval for UniCredit's acquisition of Germany's Commerzbank

• "Now there will be a lot of work to do to complete the transaction," Italian news agencies quoted him as saying

• UniCredit secured ECB approval to take delivery of the Commerzbank shares tendered into its €45 billion ($51 billion) offer, advancing plans for what would be Europe's biggest cross-border banking deal since the global financial crisis

Government Support and Preferences

• Officials have previously told Reuters that Italy's government would support UniCredit's efforts to build a large European banking group, provided the Milan-based bank keeps its headquarters in Italy

• Asked whether Rome would also accept a cross-border deal in which a major Italian bank was the takeover target, Giorgetti said: "I would prefer an Italian bank" to be the buyer

Other Cross-Border Banking Developments

French Banks' Involvement in Italian M&A

• France's Credit Agricole said this month it would not tender its 29.3% stake in Banco BPM into Monte dei Paschi di Siena's takeover offer

• The French bank has also expressed interest in a merger between its Italian unit and Banco BPM, of which it is the largest shareholder

Regulatory and Governmental Oversight

Italy's "Golden Powers"

• Italy has "golden powers" that allow the government to set conditions on deals involving strategic sectors such as banking, although Rome has said it will remain neutral on the current wave of M&A

Financial Sector's Role in Budget Funding

• Separately, Giorgetti said banks, insurers and other financial institutions would be asked to help fund next year's budget, without giving further details.

Additional Information

($1 = 0.8894 euros)

(Reporting by Giuseppe Fonte. Editing by Mark Potter)