This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Italian lender UniCredit is said to have halted its efforts to acquire Banco BPM after the former’s stock has fallen over 20% since Russia invaded Ukraine. According to Reuters sources, “A strong share price was critical to pulling off the deal to combine the second and third-largest Italian banks, with Banco BPM commanding a premium of at least 40%.” The sources added, “The deal is on hold. UniCredit needs to wait for its stock to recover and for the geopolitical environment to stabilise.” UniCredit had a credit exposure of €14.2bn ($15.7bn) to Russia as of last summer; a full write-off of its Russian business would cost UniCredit €1bn ($1.1bn) and shave-off 35bp off its best-quality capital ratio as per sources.
UniCredit’s USD 8% Perps have been trending lower from 108.75 levels in early Feb to 104.46 currently to yield 5.84%.
For the full story, click here