Intesa Sanpaolo SpA banking group has launched a surprise takeover offer of 4.9 billion euros ($ 5.3 billion) from smaller rival Unione di Banche Italiane SpA, a sign that long-term consolidation among Italian banks could start.
Intesa expects to complete the transaction by the end of this year and estimates that the share profits will increase by 6% compared to the level of 2019. According to the offer, UNI investors will get 17 new Intesa shares for every ten UBI shares they have held, which appraises UBI at about 4.25 euros per title.
UBI Banca, which presented its strategy for the next three years on Monday, considers the Intesa offer as hostile, the Italian press agency Ansa announced, citing sources who wished to remain anonymous. A UBI spokesperson declined to comment on the information. Intesa CEO Carlo Messina said on Tuesday that the combined entity will have revenues of 21 billion euros. UBI, whose market capitalization amounts to almost four billion euros, announced on Monday a plan to lay off 2,030 employees and close 175 branches by 2022.