Overview

• The Economy Ministry defended its golden power intervention in a letter to Brussels, citing Article 21 of the EU merger regulation to protect the security of Italian savers.
• Government prescriptions require UniCredit to maintain its Italian securities investments for at least five years and to divest its Russian assets by mid-January.
• UniCredit CEO Andrea Orcel reiterated that the bank will not proceed with its exchange offer for Banco BPM until the special-power conditions are clearly defined, placing the deal’s likelihood at around 20 percent.
• Consob’s suspension of the offer is under appeal at the Tar del Lazio with a hearing set for July 9, while the Italian antitrust authority will rule this week and the European Commission’s review remains open.
• In response to regulatory pressures, UniCredit plans to gradually reduce its stake in insurer Generali as it refocuses its portfolio.