March 19, 2020 / 6:03 PM / 11 days ago

Italy's Intesa revises accord to sell branches to BPER in UBI takeover plan

MILAN, March 19 (Reuters) - Italy’s Intesa Sanpaolo said on Thursday it had revised the terms of an accord to sell branches and assets to BPER Banca it had sealed to address possible antitrust issues in a proposed takeover of rival UBI Banca.

Intesa last month made a surprise all-share bid for UBI, offering 1.7 new Intesa shares for each UBI share tendered, to create the euro zone’s seventh-largest banking group with a focus on asset management and insurance.

Since then, however, the coronavirus outbreak which has killed more people in Italy than in any other country in the world including China has crippled the economy, driving a 45% drop in the market value of Italian banks.

To win antitrust approval for the planned merger, Intesa had signed a binding accord with BPER to sell 400-500 branches of the combined entity and relative assets.

Intesa and BPER said that, under the revised terms, BPER would pay the lowest between the amount previously agreed and a figure equivalent to 80% of the implied multiple which Intesa would be paying for UBI’s core capital.

The amount previously agreed was equivalent to 55% of the core capital of the portion of business being spun off.

Reporting by Valentina Za and Andrea Mandala; Editing by Kirsten Donovan

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