UniCredit's Strategic Retreat

In a surprising turn of events, UniCredit S.p.A. has officially withdrawn its all-stock acquisition offer for Banco BPM. This decision comes after facing significant hurdles, primarily due to the Italian government's intervention under the Golden Power provision, which has imposed stringent conditions on the transaction.

The Heart of the Controversy

"The normal offer process has been severely disrupted by the Golden Power provision, championed by BPM's leadership. This has unjustly restricted UniCredit's ability to communicate directly with BPM's shareholders," stated UniCredit in a press release, highlighting the challenges faced during the negotiation phase.

Regulatory Roadblocks

Adding to the complexity, CONSOB, Italy's stock market regulator, temporarily halted UniCredit's bid, citing "serious procedural uncertainties" that made it difficult for Banco BPM's shareholders to evaluate the offer properly.