MILAN, July 23 (Reuters) - Italy’s fifth-largest bank UBI Banca on Thursday rejected a sweetened takeover offer by rival Intesa Sanpaolo, saying it still failed to reflect UBI’s real value and adequately reward its shareholders.
In an effort to boost take-up after meeting resistance among UBI’s core shareholders, Intesa last week said it would offer 0.57 euros in cash in addition to 1.7 new Intesa shares for each UBI share tendered.
Intesa, which had previously ruled out improving the bid, will spend up to 652 million euros ($753 million) to offer a 40% premium on UBI’s closing price on the day the offer was unveiled, up from the initial 24%.
UBI said the cash component only partially offset a valuation shortfall which the bank and its advisers had calculated at 1.1 billion euros ($1.28 billion). ($1 = 0.8621 euros) (Reporting by Andrea Mandala and Valentina Za)