Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UBI Banca has no merger plans on the table

Published 02/04/2016, 17:47
© Reuters. UBI Bank CEO Victor Massiah gestures during an interview with Reuters in downtown Milan
UBI
-
BMPS
-
BAMI
-

By Andrea Mandala

BERGAMO, Italy (Reuters) - Italian cooperative lender UBI Banca (MI:UBI) has no merger plans on the table, the chief executive said on Saturday at a landmark shareholder meeting that saw institutional investors take command.

"There is no dossier open," Victor Massiah told shareholders.

The bank was the first Italian cooperative lender to convert into a joint-stock company following a government reform last year aimed at encouraging mergers in the sector.

UBI has previously courted rival Banca Popolare di Milano (BPM) and sources said at one stage it had been mulling a three-way deal with BPM and Monte dei Paschi di Siena (MI:BMPS).

But BPM last month agreed a merger deal with peer Banco Popolare (MI:BAPO) and Massiah himself has ruled out on several occasions any tie up with Monte Paschi.

"A merger is not of itself necessarily a good operation," the CEO said, adding the government had brought no pressure to bear on the bank to find a merger partner.

The bank's management intended to present a new business plan before the end of June, he said.

Last year's reform of Italy's 10 biggest cooperative banks, or "popolari", lifted old restrictions on ownership and ended voting rights that allowed minority shareholders to block unwanted change.

In the first shareholder meeting since converting to joint-stock status, investor funds found themselves in command and were able to vote their slate of three board members.

The funds had previously said they had no intention of appointing top positions and the remaining 12 members of the supervisory board were taken from the slate presented by the historic shareholders.

© Reuters. UBI Bank CEO Victor Massiah gestures during an interview with Reuters in downtown Milan

Andrea Moltrasio was confirmed as chairman of the supervisory board while Massiah is expected to be reconfirmed later as CEO.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.