UniCredit revealed a 4.1% stake in Generali on Sunday, stating it had no strategic intentions behind the move but acknowledging that it strengthens CEO Andrea Orcel's position within the intricate landscape of Italian finance.
The bank clarified that it acquired the stake by gradually purchasing shares on the market. Additionally, UniCredit mentioned holding an additional 0.6% of Generali within the framework of regular client services and associated hedging activities.
UniCredit emphasized that its interest in Generali is purely financial, with no strategic agenda, as the bank remains committed to its acquisition bid for Banco BPM and its investment in Commerzbank. The investment was described as exceeding financial return metrics and having a minimal impact on CET1 (core capital).
This development coincides with Generali facing potential boardroom challenges in the upcoming months, including government scrutiny over dealings with France's BPCE, amidst a flurry of takeover activities in the insurance sector.
Shareholders of Generali are anticipated to deliberate on CEO Philippe Donnet's tenure, following recent discord over the BPCE agreement. Past clashes, like the one three years ago led by Mediobanca, Generali's primary investor, aimed to remove Donnet but were unsuccessful. Both parties are now investing in Monte dei Paschi di Siena, with Mediobanca spearheading an initiative involving the institution.
Investors, including those mentioned above, have also turned their attention to UniCredit CEO Orcel's targets such as BPM and Anima Holding, both of which have since become focal points of interest.