Credit Agricole secures two-third acceptance in $1 bln takeover bid for Creval - source


Adds details

MILAN, April 23 (Reuters) - The Italian arm of Credit Agricole CAGR.PA has secured the targeted acceptance of at least two thirds of capital in its buyout offer for Italy's Creval PCVI.MI, a source familiar with the matter said.

The 855 million euro ($1 billion) bid concludes on Friday and acceptance stood just above 48% of Creval's capital on Thursday, rising above the majority threshold when including a 2.45% stake Credit Agricole Italia already owned.

To boost take-up after the offer was initially spurned by many Creval investors and the bank itself, Credit Agricole lifted the price by 16% to 12.2 euros, saying it would pay 12.5 euros a share only if more than 90% of capital was tendered.

With acceptance still low, France's no.2 bank was forced to waive the 90% threshold and set the final price at 12.5 euros, while extending the offer through Friday.

The acquisition of Creval allows Credit Agricole Italia to double its market share in Italy's wealthiest areas at a time when the country's fragmented banking sector is consolidating.

($1 = 0.8297 euros)

(Reporting by Andrea Mandala and Valentina Za, editing by Agnieszka Flak)

((; +39 02 6612 9526;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.