Credit Agricole eyes 29.9% stake in Banco BPM – report  

Credit Agricole has notified the Italian government of plans to raise its holding in Banco BPM to almost 30%, Reuters reported, citing sources. 

The French bank told officials in Rome it had used derivative contracts to move towards a 29.9% stake from 22.9%, while excluding the prospect of a full takeover. 

The step follows a fresh turn in Italian banking dealmaking. Earlier this month, Intesa Sanpaolo launched an unsolicited €30.6bn ($35bn) cash-and-share offer for Monte dei Paschi di Siena (MPS), at the same time as Banco BPM invited the state-rescued lender to begin merger discussions. 

In that context, Credit Agricole is seeking to reinforce its position as Banco BPM faces possible renewed interest from suitors, the news agency noted.  

Bankers said UniCredit, now engaged in Germany with its bid for Commerzbank, may again look at BPM, a possibility that Credit Agricole is preparing for. 

A UniCredit spokesperson  

said UniCredit was ready to act if opportunities emerged. 

If it does not contest Intesa’s bid for MPS, Banco BPM stands as the only remaining domestic target available to UniCredit. 

Via its members on Banco BPM’s board, Credit Agricole supported the proposal to start merger talks with MPS, the news agency added.  

Even so, a third source familiar with the bank’s position said it would not back any Banco BPM response aimed at rivaling Intesa’s offer. 

Any UniCredit attempt to buy BPM would require an agreement with Credit Agricole. Bankers said the French lender could receive branches and potentially commercial partnerships in exchange for its BPM holding. 

UniCredit’s attempt to buy BPM last year led to a clash with the government, which applied its ‘golden powers’ to attach conditions to the deal, including a requirement for UniCredit to leave Russia. 

UniCredit retracted its bid for Banco BPM due to unmet conditions related to the golden power authorisation. 

Having previously supported a combination between MPS and BPM, the government has since said it will keep a “neutral” position during the current M&A phase, as the European Commission steps up pressure on EU states not to hinder banking consolidation at home or across the bloc.