Intesa launches takeover bid for UBI

(ANSA) - Rome, February 18 - Italy's biggest bank Intesa Sanpaolo has launched a takeover bid for the country's fifth-biggest lender, UBI Banca.
    The "non agreed" but not hostile all-share bid is worth some 4.86 billion euros.
    It would create a group with three million customers.
    Intesa said the operation was aimed at "further consolidating its leadership" in the Italian banking sector.
    Intesa CEO Carlo Messina said "the operation opens a new chapter in the history of the group: we want to unite two excellences of our banking system, Intesa Sanpaolo and UBI Banca, to give life to a new reality, leader in sustainable and inclusive growth".
    "Together," Messina said, "we will create a European leader able to reach a net profit of more than six billion euros in 2022".
    Intesa shares rose over 3% on the Milan stock exchange while UBI ones surged by almost 30%, above the takeover value.
    The Financial Times called the operation "an audacious attempt to kick-start consolidation in Italy's fragmented banking sector".
    Reuters said the move had been a "surprise".
    It said it "kicked off long-awaited consolidation among Italian banks".
    Intesa said it would offer UBI shareholders 17 newly issued Intesa shares for every 10 UBI shares tendered to create a European-sized player focused on wealth management and insurance, managing more than 1.1 trillion euros in customers' financial assets.
    "The banking sector is heading for consolidation in the coming years ... it is in Intesa's interest to reach a size that will allow it to compete ... in Europe," Intesa said in a statement.
    The bank said it had picked UBI because it was very well managed and had a similar business model, so as to minimise integration risks.
    UBI had no immediate comment. A source close to Intesa said the move had not been previously agreed but was not hostile.
    UBI is Italy's fifth-largest bank and the strongest among second-tier lenders. It had long been tipped to play a prominent role in an expected wave of mergers among mid-sized Italian banks.
    Intesa said the exchange offer valued UBI shares at 4.254 euros each. UBI shares closed up 5.5% on Monday at 3.491 euros each after the bank presented a new three-year plan.
    If the offer is successful Intesa will delist UBI as quickly as possible and merge with it, targeting a combined profit of more than 6 billion euros in 2022.