Banco BPM CEO Giuseppe Castagna addressed concerns from suitor UniCredit regarding the potential impact of a regulatory setback on BPM's lending capacity related to its acquisition of fund manager Anima Holding. Earlier this week, BPM announced it had received a European Central Bank opinion on its request that would significantly alleviate the acquisition's impact on its capital ratios.
In a statement, UniCredit CEO Andrea Orcel expressed that Banco BPM's ability to lend could be compromised due to the capital required for the Anima deal. He urged Banco BPM to clarify the implications swiftly, allowing UniCredit to assess its own strategy regarding the smaller bank.
Orcel indicated that he needed to evaluate the effects of the Anima deal on BPM's profitability and capital strength once completed, as well as any mitigating measures BPM might implement. In response, Castagna reassured stakeholders at an internal event, stating that current capital levels and projections post-Anima acquisition are sufficient.
He highlighted that Banco BPM had extended nearly 100 billion euros in loans to companies over the past five years, with an additional 2.5 billion euros disbursed thus far this year. "We have the ability and the will to keep going," Castagna noted, expressing confidence in the bank's lending capability.
BPM confirmed it would proceed with the Anima acquisition irrespective of the regulatory framework known as the Danish Compromise. The ECB's opinion has dampened BPM shareholders' hopes of obtaining a higher premium from UniCredit, which announced a buyout offer expected to be launched in the coming month. UniCredit stated that the ECB's stance reinforces the appropriateness of the premium included in its offer for BPM.