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BPER Banca approves cash call to fund purchase of assets in Intesa/UBI deal

Published 22/04/2020, 11:25
© Reuters. FILE PHOTO: Intesa San Paolo bank headquaters is seen in Turin

MILAN (Reuters) - Shareholders in BPER Banca (MI:EMII) on Wednesday gave a green light to a cash call needed to fund a deal which Intesa Sanpaolo (MI:ISP) is hoping will address antitrust issues in its takeover bid for smaller rival UBI (MI:UBI).

To salvage the deal with BPER as it presses ahead with its unsolicited offer for UBI amid one of the world's deadliest coronavirus outbreaks, Intesa last month said it was ready to accept a lower price.

BPER CEO Alessandro Vandelli told shareholders that, under the revised terms of the Intesa deal which now takes into account shrinking market valuations for banks, the size of the cash call would be much smaller than an initial estimate which the bank had put at 800 million euros ($869 million).

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