Crédit Agricole raises stake in Banco BPM after ECB approval

(Sharecast News) - Crédit Agricole has received the approval of the European Central Bank to raise its stake in Italian lender Banco BPM ahead of competitor UniCredit's formal takeover later this month. On Tuesday, the ECB authorised Crédit Agricole - which previously held a 9.9% stake in Banco BPM - to cross the 10% threshold.

The French bank had held a position through derivatives reaching 9.9% of Banco BPM's share capital, and intends to exercise its position, taking its total shareholding to 19.8%.

"The increase of its stake is consistent with Crédit Agricole's strategy as a long-term investor and partner of Banco BPM," the company said in a statement, adding: "Crédit Agricole does not intend to launch a public offer for the capital of Banco BPM".

At the same time, UniCredit announced it would launch a buyout offer of Banco BPM on 28 April after getting the green light from Italian regulator Consob. That follows a rejected takeover offer of the sector peer in November, which Banco BPM said undervalued the business.