UniCredit CEO says July terms for MPS deal needed to reassure market

FILE PHOTO: The UniCredit bank logo in the old city centre of Siena, Italy
FILE PHOTO: The UniCredit bank logo in the old city centre of Siena, Italy, June 29, 2017. REUTERS/Stefano Rellandini/File Photo/File Photo

November 8, 2021

MILAN (Reuters) – UniCredit set strict terms in July for a potential merger with Monte dei Paschi to reassure investors in relation to a deal that could be perceived by markets as being forced onto the bank by politics, CEO Andrea Orcel said.

Speaking at a parliamentary hearing on Monday Orcel said the markets’ reaction to the announcement had shown the approach was the right one.

Orcel said he was “sorry at a personal level” that the deal had failed, but the capital injection needed to clinch a deal on the July terms surpassed the Treasury’s expectations and none of the solutions UniCredit proposed to reduce it had worked out.

(Reporting by Valentina Za; editing by Agnieszka Flak)