The offer of Unicredit For Bpm bench it caused a very harsh reaction from the Government, in particular from the deputy prime minister and leader of the League Matteo Salvini. Economy Minister Giorgetti also threatened the use of golden power, although without the certainty that this measure is legitimate given that Unicredit is not a foreign company.
The reason behind this reaction is Mt of the Paschi di Siena (Mps). The Treasury still holds some shares of the Tuscan bank, rescued by the state in 2017, and has sold a significant part of them to a consortium of entrepreneurs that revolved around Bpm. What could happen to MPS if Unicredit bought BPM?
Why does the Government care so much about Bpm
Among the first reactions to Unicredit’s public exchange offer on all the shares of Bpm desk, there was that of the Minister of Infrastructure and Transport Matteo Salvini. The leader of the League immediately proved hostile towards the operation, defining Unicredit as a “foreign bank”. Economy Minister Giorgetti, also a member of the Northern League, also attacked the offer, also invoking the golden power, the government’s ability to stop financial operations that could concern strategic companies at a national level.
The possibility of using this tool in this particular operation has already been questioned and would be unprecedented both for the sector in which it would be used, the banking one, and because it would concern an operation of two Italian entities. The reason for this reaction of the representatives of the League, second Salvini, would have arisen from the desire to protect the independence of Bpm and to prevent the creation of a banking monopoly in Italy. However, it is difficult given that one of the largest European banking groups, Intesa Sanpaolo, is also based in Italy.
However, according to many observers, the League’s anger also concerns Monte dei Paschi di Siena (Mps). In fact, the Government would consider Bpm as an excellent candidate for the purchase of the shares of the Tuscan bank that have remained in the hands of the State since the 2017 rescue. An operation that is part of the ambitious privatization plan from which the executive wants to obtain several billion euro.
What would happen to MPS if Unicredit acquired BPM
If Unicredit bought Bpm, the State would probably have to find another buyer for MPS. The Tuscan bank would remain independent and would also skip the idea of creating, around the Bpm-Mps conglomerate, a third Italian banking hub of significant size. According to what Milano Finanza reports, however, this may not be such a negative prospect for the Treasury.
At the moment the state owns 11% of MPS. A lot, but not enough to cause a reaction from the European Union, which has very strict rules against excessive public participation in banks. Monte dei Paschi already has ample private capital, with partners, such as the Del Vecchio family or Francesco Gaetano Caltagirone, who could support it without the need for another bank to intervene.
It would hardly stand out as the third Italian banking hub, capable of comparing itself to Unicredit or Intesa Sanpaolo, but it would remain independent. It could also end up absorbing part of the inevitable redundancies that will be created by the acquisition of Bpm, especially at the level of local branches.
