Unipol Aims for Over 30% Stake in Future Merged BPER-MPS Banking Group
Unipol's Strategic Moves in the Italian Banking Sector
Unipol's Ambitions and Stake Acquisition
MILAN, Aug 7 (Reuters) - Italian insurer Unipol aims to hold more than 30% of a future banking group combining BPER Banca and assets carved out of Monte dei Paschi di Siena (MPS), with scope to increase that stake over time, its chief executive said on Friday.
Details of the MPS Carve-Out Deal
Unipol has agreed to buy a business comprising around 635 MPS branches, as well as most of the Siena-based lender's central operations and the historic Monte dei Paschi brand from Intesa Sanpaolo if Intesa succeeds in a takeover bid for MPS.
The insurer plans to combine those assets with medium-sized Italian lender BPER, where it is already the largest shareholder.
CEO Commentary and Future Plans
"Our ambition is to have a stake of more than 30% in the new financial entity," CEO Matteo Laterza told analysts after first-half results.
"Depending on our capability in terms of capital generation, we look forward over time to increasing the stake," he said.
Laterza said Unipol wanted to "create a big financial conglomerate that will have an insurance leg and a banking leg that make the same contribution in terms of profitability."
Financial Terms and Capital Strategy
Addressing analysts' questions on the agreement with Intesa, he said the terms protected Unipol from any increase in the value of Intesa's bid beyond agreed limits.
Under the potential deal, the price Unipol would pay for the MPS carve-out is capped at €3.5 billion.
Laterza said Unipol's excess capital generation would largely be directed toward financing the MPS carve-out acquisition alongside a planned €2.5 billion capital increase, which he expects to complete by year-end.
(Andrea Mandalà, editing by Gavin Jones)
