UniCredit Appeals to Italy’s Top Court Over Failed Banco BPM Acquisition
UniCredit, one of Italy’s leading banking institutions, has reportedly submitted an appeal to the country’s highest court, the Consiglio di Stato (Council of State). The appeal comes in the wake of the government’s conditions placed on UniCredit’s unsuccessful bid to acquire Banco BPM, another major Italian bank.
Initial Legal Challenge and Government Conditions
The bank’s appeal follows an earlier legal challenge in a lower court that had only yielded a partially favourable outcome. The crux of the government’s conditions was that UniCredit cease its operations in Russia, a stipulation that the court ruling confirmed and that the bank is now contesting.
Government’s Reaction to the Appeal
Led by Prime Minister Giorgia Meloni, the Italian government has interpreted UniCredit’s legal action as a hostile act, as reported by Reuters. The bank initially challenged the government’s decision, asserting a need for greater legal clarity regarding the imposed conditions.
Abandonment of the Bid and Future Legal Actions
UniCredit abandoned its €15bn all-share offer for Banco BPM in July this year, attributing the decision to government intervention. The last day for UniCredit to submit its appeal was yesterday, following the passing of earlier deadlines in recent weeks. Some members of UniCredit’s board are looking to use the legal appeal to seek compensation from the government in the future.
Government’s Special Power and EU Intervention
This dispute comes at a time when the Italian government is using special powers to review and veto corporate deals in strategic sectors, a move that is attracting scrutiny from European regulators. The European Commission is expected to request the Italian government later this month to reverse its decision on the Banco BPM bid and revise the legislation. Ahead of the anticipated EU intervention, Italian officials have held discussions with UniCredit, urging the bank to refrain from legal action.
UniCredit’s Stake in Alpha Bank
Last month, UniCredit increased its stake in Greece’s Alpha Bank to approximately 29.5%, following approval from the European Central Bank.
This unfolding situation is a significant development in Italy’s banking sector and displays the complex relationship between government policy and corporate decision-making. As UniCredit continues to contest the government-imposed conditions, the outcome of this appeal could have far-reaching impacts on the banking and financial services industry, not just in Italy but across the European Union.
For the original article, please click Here.
