It looks like the Unicredito takeover of HVC is neither one thing nor the other.
In order to ensure a quick and agreed deal, Unicredito appear to have conceded much on Board and senior management representation. Unclear executive leadership is a mistake in any takeover, but it is a disaster in a people business such as banking.
It reminds me of the merger of equals that took place in Spain of Banco de Bilbao and Banco de Vizcaya, which took place in the late 1980´s. Years later in internal meetings, senior executives were still asking those they didn´t know which bank they came from. The bank didn´t take a really unified approach until most of the senior executives of one of the banks had gone. Banco de Bilbao eventually won out and their subsequent bank acquisitions in Latin America (where even with minority investments they clearly had the management in their hands) and then of Argentaria back in Spain did not make that mistake, and the results have proven the effectiveness of that approach.
If Unicredito fails to establish clarity in management from the beginning, their performance will stagnate, and their shareholders will feel it.
OAM
Y en Español.
Posts
