ABN, which currently owns 12.7% of the Padua-based financial organization, said that the deal would only go ahead if it could attain 50% plus one of the shares in the company. Additionally, the Netherlands-based bank said that it would only delist Banc Antonveneta if it secured more than 90% of the shares.
The Dutch bank’s offer represents a 7% premium on the share price on the day of announcement and values the Italian bank at E7.2 billion. Therefore to secure all of the outstanding shares ABN would pay a total of E6.3 billion.
ABN has enjoyed an association with Banc Antonveneta, which provides financial services in the wealthy north east region of Italy to 1.5 million customers, since 1995. Banca Antonveneta is thought to represent an ideal platform for ABN Amro to expand its presence in the mid-market segment, which is at the center of the company’s strategy to generate future profits.
Rijkman Groenink, chairman of the managing board of ABN Amro, said: Italy is an attractive and large market with strong growth opportunities, particularly in those segments that are fully aligned with our strategic focus.
With this offer, we provide clients, employees and management of Banca Antonveneta with the support, the stability and the capital required for the next stage of Banca Antonveneta’s development as a leading bank in Italy, Groenink added.
However, ABN will have to win over both the Italian shareholders and Antonio Fazio, governor of the bank of Italy, who’s ratification is needed. Fazio has a past record of fiercely defending Italian banks from foreign takeover, although he is coming under increasing pressure from the EU to allow an open market environment in Italy. ABN Amro’s offer will be launched on April 15.
