UniCredit CEO says bank not a takeover target: report

MILAN Wed Nov 16, 2011 2:17am EST

MILAN (Reuters) - The chief executive of UniCredit (CRDI.MI), whose market capitalization has shrunk to 14 billion euros, ruled out the bank becoming a takeover target, he said in an interview with Italian daily Il Sole 24 Ore on Wednesday.

CEO Federico Ghizzoni said he was "serene" when asked about the possibility that the large third-quarter loss posted by the bank and the announcement of a 7.5 billion euro capital increase could cost him his job when his mandate expires in April.

"I don't think so," Ghizzoni said when asked if he thought the low market capitalization could prompt a takeover of UniCredit.

"We are a systemic bank and I doubt that in the present circumstances anyone would consider creating an even bigger bank," he said.

Ghizzoni ruled out UniCredit selling its assets in Poland and Turkey or that it would consider exiting Italy's Mediobanca (MDBI.MI), where it is the leading shareholder.

Moody's said on Wednesday it may cut the bank's 'A2/C-' ratings following a 10.6 billion euro third-quarter loss due mainly to goodwill writedowns.

(Reporting by Valentina Za)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.