March 7, 2020 / 9:18 AM / in 21 days

Intesa Sanpaolo will not increase value of bid for UBI Banca - CEO to paper

ROME, March 7 (Reuters) - Intesa Sanpaolo will not raise the value of it bid for smaller rival UBI Banca, the chief executive of Italy’s top retail bank said on Saturday.

Intesa last month unveiled a surprise all-paper takeover bid for UBI, offering 1.7 new Intesa shares for each UBI share tendered, to create the euro zone’s seventh-largest banking group, with a focus on asset management and insurance.

When it was announced, just before midnight on Feb. 17, Intesa’s offer valued UBI shares at 4.254 euros each, a figure which the recent sell-off has lowered to 3.36 euros.

“I want to be clear on this: there will be no rise in the price. And I would be sorry if someone bought shares hoping in a hike,” Carlo Messina told Italian daily Corriere della Sera in an interview.

Messina reiterated that the bank would press on with its bid even if the take-up threshold were 50.1%, saying “this share is sufficient to carry out much of the synergies envisaged”.

Reporting by Giulia Segreti; Editing by Alison Williams

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