Italian bank Unione di Banche Italiane (UBI) has said no to a takeover attempt by industry colleague Intesa Sanpaolo. According to the lender, the takeover bid, which amounts to 4.9 billion euros, is too low and “does not reflect the real value” of UBI.
UBI’s shareholders would also have preferred that Intesa Sanpaolo make its offer in cash, rather than in shares. In addition, it is unclear whether the strategic objectives of the acquisition are feasible, according to UBI.
According to insiders, the takeover attempt came as a surprise to the UBI board. The financial service provider announced earlier this year that it wanted to remain independent in a new strategic plan.
After a possible merger, a bank would emerge that would outdo the largest Italian bank, UniCredit. Joining forces in the European banking sector is urgently needed. Profitability is under pressure from low interest rates, while banks have to invest a lot in new technology and the fight against money laundering.
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