Banco BPM says UniCredit's 'uncommon' $10.5 billion takeover supply doesn’t replicate its profitability

Italian lender Banco BPM on Tuesday mentioned the sudden takeover supply by home rival UniCredit doesn’t replicate its profitability.

The ten billion-euro ($10.52 billion) bid introduced by UniCredit on Monday was not beforehand agreed and was delivered on “uncommon” phrases, the Banco BPM board of administrators mentioned in a CNBC-translated assertion.

It additionally fails to replicate Banco BPM’s profitability and potential for additional worth creation, the board added, flagging that the brisk timeline of a possible merger — anticipated “within the shortest time attainable” — would harm the lender’s authorized autonomy.

The Banco BPM bid comes two months after Unicredit, Italy’s second-largest financial institution, set sights on a attainable takeover of Germany’s Commerzbank.

Banco BPM’s board mentioned Unicredit’s supply exposes its stakeholders to those enlargement plans in Germany, which symbolize a “important dilution of the current geographical publicity, as an alternative of a beautiful focus of Banco BPM in probably the most dynamic areas of the nation and of the Euro zone.”

CNBC has reached out to UniCredit for remark.

On Monday, the financial institution provided to pay 6.657 euros for every share of Banco BPM — marking solely a slight premium on Friday’s shut value of 6.644 euros — as a part of an all-stock deal.

This breaking information story is being up to date.