Stock Groups

UniCredit chief not interested in Generali or Mediobanca

by Mike Robinson

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© Reuters. FILE PHOTO: A UniCredit emblem is seen in downtown Rome, Could 10, 2016. REUTERS/Tony Gentile

MILAN (Reuters) – UniCredit desires to develop its home footprint and will take into account tie-ups in Italy and overseas, however has little interest in the nation’s largest insurer Generali (MI:) and its prime shareholder Mediobanca (OTC:), CEO Andrea Orcel mentioned in a newspaper interview.

UniCredit, Italy’s No.2 financial institution by belongings, on Thursday unveiled a three-year plan https://www.reuters.com/markets/europe/unicredit-targets-2024-net-profit-above-45-bln-euros-2021-12-09, pledging to return to traders 16 billion euros ($18 billion) by 2024, or nearly the entire earnings generated through the interval.

Offered UniCredit delivers on the plan, the payout aim would go away intact the financial institution’s extra capital reserves, giving it room to contemplate potential mergers and acquisitions.

In an interview with Italian each day Il Sole 24 Ore revealed on Saturday, Orcel reiterated that the group may take into account M&A offers that strengthen its franchise and its shareholder return plans.

Nonetheless, he quashed hypothesis that UniCredit might be interested by Generali or Mediobanca.

“I do not consider in tie-ups between banks and insurers. They don’t work,” Orcel mentioned.

“Neither we’re interested by managing monetary holdings,” he mentioned in reference to Mediobanca’s 13% stake in Generali, from which it reaps a sizeable share of its earnings.

Orcel’s observe report as one among Europe’s most skilled dealmakers has fuelled hypothesis he may search a deal involving UniCredit, after predecessor Jean Pierre Mustier unsuccessfully tried to strike a cross-border merger.

In October he walked away from a doable rescue deal for state-owned rival Monte dei Paschi as a result of Italy’s Treasury refused to satisfy his phrases.

Whereas Mustier sought to scale back UniCredit’s publicity to its debt-laden residence nation, Orcel repeated the financial institution wished to develop domestically, noting its latest success in gaining market share with the assistance of recent shopper finance merchandise.

($1 = 0.8841 euros)

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