Banco BPM has rejected UniCredit's takeover bid, stating that it is not reflective of its profitability and could undermine its legal autonomy and operational independence.
The board of directors expressed concerns about the strategic rationale behind the bid, as well as the potential dilution of Banco BPM's geographical focus.
UniCredit has faced opposition in its expansion plans, including a potential takeover of Commerzbank, and CEO Andrea Orcel has indicated that a transaction with Banco BPM would take precedence.
Market reactions to the bid have been mixed, with UniCredit's shares remaining stable and Banco BPM's stock experiencing a slight decline.
The outcome of this bid could set a precedent for future mergers and acquisitions in the region.
The ongoing dialogue between the two banks reflects broader trends in the European banking sector, where consolidation efforts are seen as necessary for survival in a competitive global market.