UBI Launches Legal Action Over Intesa's Bid
May 27 2020 - 4:18AM
Dow Jones News
By Pietro Lombardi
Italian bank Unione di Banche Italiane SpA is launching legal
action over Intesa Sanpaolo SpA's takeover bid as it believes the
coronavirus pandemic has triggered a condition that would make the
offer invalid.
UBI said late Tuesday that it believes the bid is now
ineffective as the pandemic has triggered a "material adverse
change," or MAC, a condition which Intesa failed to waive "in a
timely way."
"The judicial action is aimed at protecting the subjective
rights of UBI Banca," the bank said in a statement.
Intesa declined to comment on the matter.
In February, Intesa launched a surprise all-share takeover bid
for smaller rival UBI, valued at the time at $5.3 billion. The
combination would create Italy's largest bank. In early May, Intesa
said the strategic rationale of the deal was even stronger in the
aftermath of the coronavirus pandemic .
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
May 27, 2020 04:03 ET (08:03 GMT)
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