Fitch confirms Banco BPM’s rating
Fitch Ratings recently announced that it maintains Banco BPM’s Long-Term Issuer Default Rating (IDR) at ‘BBB-‘, with a Positive Rating Watch (RWP) perspective also for the short-term IDR of ‘F3’. This decision was influenced by the exchange offer made by UniCredit to acquire all of Banco BPM’s common shares. The current situation presents a framework of uncertainties and opportunities for both institutions
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Details on UniCredit’s offer
The transaction proposed by UniCredit requires regulatory approval and the success of the offer will depend on the acquisition of at least two-thirds of Banco BPM’s shares. Alternatively, UniCredit could accept control with at least 50% plus one share. However, Banco BPM’s board of directors expressed concerns regarding the proposed terms, believing that they do not adequately reflect the bank’s strengths and profitability prospects
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The uncertainties and the timing of the offer
Fitch pointed out that there is still a lot of uncertainty about the time needed to complete the exchange offer. The resolution of the RWP will take place only when the offer is completed and the results are defined. This process could take longer than six months, especially if there are delays due to prolonged negotiations or the need to obtain regulatory approvals. The current situation requires careful observation by investors and analysts
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Other developments in the Italian economic landscape
In a wider economic context, Ferrari recently purchased more than 30,000 ordinary shares on Euronext Milan as part of a share repurchase plan, which aims to reach a total value of 150 million euros. This initiative is part of a larger 2 billion euro program, scheduled until 2026. In addition, research conducted by Enea has developed a non-destructive molecular analysis technique to guarantee the origin and quality of Italian rice, offering new opportunities for producers and consumers
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Industrial production and construction in Italy
In 2024, steel production in Italy fell by 5% compared to the previous year, with flat rolled steel registering a significant decrease of 9.7%. However, Istat reported an increase of 2.6% in construction production in November compared to October. In the September-November 2024 quarter, growth was 1.4% compared to the previous quarter, signaling some resilience in the sector. The index adjusted for calendar effects increased by 3.6% per year, while the crude index grew
by 0.1%.