UniCredit CEO says 'we'll see' when asked about Monte dei Paschi -CNBC
Reuters
Published Jan 18, 2023 10:00
Updated Jan 18, 2023 11:37
MILAN (Reuters) -UniCredit Chief Executive Andrea Orcel on Wednesday did not rule out the Italian bank reassessing a potential acquisition of Monte dei Paschi di Siena in the future, after talks collapsed in 2021.
Monte dei Paschi is 64% owned by the Italian state, which needs to eventually cut its stake to meet re-privatisation commitments given to the European Union at the time of the bailout.
"I think Monte dei Paschi has taken a different direction in their strategy. They're going it alone at the moment. And they've raised their capital, they're rationalising the bank, they're restructuring the bank," Orcel said in an interview with CNBC.
"They're doing a good job. And that's what there is about it. So they need to do that, and then we'll see," he said when asked about a Reuters report that UniCredit (LON:0RLS) was still seen as a potential buyer for Monte dei Paschi, alongside Banco BPM.
Monte dei Paschi raised 2.5 billion euros in capital in December, despite rocky markets, to finance thousands of voluntary staff exits and cut costs.
Prime Minister Giorgia Meloni said in December that the Monte dei Paschi situation had been handled badly by the previous government and a re-privatisation should help ensure that Italy has several large banking groups.
A source in Meloni's cabinet office told Reuters at the time the comment indicated the government was diffident towards Orcel given the failed negotiations - which may give an edge to Banco BPM.
Orcel praised Meloni's right wing government saying it had taken "tough" economic decisions from the start and that the 2023 budget was "quite solid and cautious."
"This is a government that has committed to follow on (previous Prime Minister Mario) Draghi's policies," he said.
Get The App
Written By: Reuters
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.