What is going on with the Italian financial system? Two european banks are currently trying to close takeovers of local banks and, contrary to European Commission rulings, the Bank of Italy is throwing up obstacles every step of the way.
Currently, ABN/Amro has been trying to take over Banca Antonveneta and they are now facing a local group with an alternative offer on the table. At least they have now seen the face of their competition, until now their competition appeared to be planning and organizing inside the offices of Antonio Fazio, Governor of the Bank of Italy.
The local counter offer would give ABN/Amro a profit on its italian venture of over 500 million Euros which isn't a bad way to walk away from an overpriced deal.
Banco Bilbao Vizcaya Argentaria's outstanding offer for Banca Nazionale del Lavoro is suffering the exact same obstacles, including the expectation of a local counteroffer.
How can it be good for the italian financial system for these shenanigans to be going on and for significant profits to be made, just to be got rid of. How is the local group planning to make this acquisition pay its way?
No surprise that those that will suffer at the end are italian consumers who will have less competition in their banking services and/or the taxpayers having to come through with a bailout, just to have the cosy relationship withing their financial system continue.
OAM
See article:
The Bank of Italy has defended its actions in the cross-border battle for Banca Antonveneta amid criticism that it is biased against foreign investors.
Dutch bank ABN Amro has been locked in a bid tussle with Italian suitor Banca Popolare Italiana to buy Antonveneta.
The Bank of Italy has come under fire for allowing Pop Italiana to raise its stake in Antonveneta to nearly 30%, while delaying similar attempts by ABN.
See full Article.
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