|
BBV, UniCredito in talks
|
 |
October 11, 1999: 8:42 a.m. ET
Spanish, Italian banks eyeing big cross-border merger
|
LONDON (CNNfn) - Spain's Banco Bilbao Vizcaya and UniCredito Italiano are in talks about an alliance that could mushroom into Europe's first cross-border bank merger since the launch of the euro last January, according to a published report.
The banks previously confirmed that they were talking to each other and other European rivals about enhancing their regional presence. But Monday's report in the Wall Street Journal was the first to cite people close to the talks lending credence to the idea of a full-blown merger.
BBV, Spain's second-largest bank behind Banco Santander Central Hispano, declined to comment Monday.
The newspaper said the talks currently center on a European joint venture that would entail swapping shares and pooling assets. It asserted an outright merger isn't on the agenda at the moment.
But the paper cited a person familiar with BBV saying the negotiations are likely to extend beyond their current parameters and could result in a much bigger deal. A senior Italian government official said a merger is highly likely.
"First, BBV and UniCredito are seeking an agreement on exchanging stakes and building a partnership for joint financial products," the official said. "If that works out, then they may opt for a merger."
A BBV-UniCredito deal would eclipse any cross-border banking deal in Europe so far. The largest tie-ups to date have been domestic affairs, led by Banque Nationale de Paris' (PBNP) acquisition of Paribas (PPM) and Banca Intesa's pending buyout of rival Banca Commerciale Italiana.
BBV, the Journal said, has been under increasing pressure to make a merger move since January, when Banco Santander joined with Banco Central Hispano, creating Spain's largest bank.
A combined BBV-UniCredito would be Southern Europe's biggest bank and a powerful rival to such northern European giants as Deutsche Bank (FDBK) and France's BNP, the newspaper said.
UniCredito Italiano, formed through last year's merger of UniCredito and Credito Italiano, has been charting a strategy of expansion outside Italy. The bank suffered a setback earlier this year when the Bank of Italy's governor thwarted UniCredito's hostile bid for Banca Commerciale Italiana. Instead, BCI bought Banca Intesa in a $15.1 billion deal that created Italy's largest banking company.
The Journal said that despite a size disparity between BBV and UniCredito -- the former is valued at $27.8 billion, versus $24.44 billion for UniCredito -- a link could be structured as a "merger of equals."
-- from staff and wire reports
|
|
|
|
|
|
UniCredito
BBV
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
