Intesa Sanpaolo Launches €4.9 Billion Bid to Buy Italian Banking Rival UBI Banca

Intesa Sanpaolo, Italy’s biggest domestic lender, has launched a €4.86bn ($5.26bn) takeover bid for its rival UBI Banca in an audacious attempt to kick-start consolidation in Italy's fragmented banking sector, the Financial Times reported. Just before midnight on Monday local time, Intesa, based in Turin, unveiled an all-share offer to buy Italy’s fourth-biggest lender through notices detailing its plans to issue new shares to fund the deal. If successful, the combination would create the seventh-largest bank in the eurozone with €1.1tn in assets. It would also give Intesa an additional 3m retail, small business and private-banking clients, the company said. Intesa has offered to pay 17 new shares for every 10 UBI Banca shares tendered. It said the bid corresponds to a value of €4.25 per share in UBI Banca, or a 27.6 per cent premium to the Bergamo-based lender’s share price at the end of last week. Read more

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