UniCredit dropped appeal against Italy-set terms for Banco BPM bid, document shows
UniCredit Withdraws Legal Challenge Over Banco BPM Bid Terms
By Valentina Za and Giuseppe Fonte
Background and Legal Proceedings
MILAN, June 22 (Reuters) - UniCredit dropped an appeal against Italy's government over the terms Rome had imposed on its failed bid for smaller rival Banco BPM, a document seen by Reuters showed on Monday.
Italy's top administrative court at the end of May declared the appeal as extinguished after UniCredit withdrew it on April 22, according to the document.
End of Legal Dispute
The court's decision, which had not been made public, marks an end to a legal dispute that had soured relations between Italy's second-largest bank and the administration of Prime Minister Giorgia Meloni.
Details of the Dispute
Government Intervention and Deal Collapse
The clash erupted last year, when UniCredit withdrew its offer for BPM, blaming government intervention for scuppering the €15 billion ($17.19 billion) deal, which in turn derailed government efforts to broker a merger between BPM and bailed-out bank Monte dei Paschi di Siena.
Golden Power Rules and Conditions
Among several conditions set under golden power rules aimed at shielding strategic assets, Italy told UniCredit it had to halt activities in Russia to prevent savings collected by Banco BPM from benefiting Moscow's economy, as Russia continues its war against Ukraine.
Appeals and Clarification
A first appeal ended with a court ruling that scrapped some of the government-set terms, while keeping the request for the bank to exit Russia. That led UniCredit to file a new appeal to obtain recognition by a court that it was not a threat for Italy's national security.
A source familiar with the matter said UniCredit had secured such clarification by Italian State Attorney's Office.
Broader Implications and Market Reactions
Golden Power Rules and Corporate Concerns
Italian companies often complain that golden powers result in undue interference in corporate affairs and more red tape, obliging them to inform the government about their plans to avoid possible infractions and fines.
Other Factors and UniCredit's Future Plans
Economy Minister Giancarlo Giorgetti said last week that UniCredit had dropped its bid for BPM due to resistance from France's Credit Agricole, the leading investor in BPM with a stake of more than 20%.
UniCredit is now focused on attempts to take over Germany's Commerzbank.
Exchange Rate
($1 = 0.8728 euros)
(Reporting by Valentina Za and Giuseppe Fonte; Editing by Giulia Segreti and Tomasz Janowski)
