Since ABN launched a takeover move for the provincial Italian financial organization Antonveneta at the end of March, fellow Italian bank Lodi has repeatedly increased its stake through a series of share purchases. Lodi’s tactics, believed to be aimed at blocking ABN’s overall purchase, have infuriated the Dutch organization, leading it to issue a complaint to the financial authorities of the Mediterranean country.
In a matter of just a few weeks Lodi has increased its share in Antonveneta from 5% to a significant 29%. The developments have angered ABN as they jeopardize its takeover bid and because it was not, until recently, afforded the same opportunities to match Lodi’s share buying by Italian regulators.
Now it is believed that Italian financial police have taken dramatic action by raiding Lodi as part of a probe into market rigging of share prices. Lodi is already being investigated by Italian markets regulator Consob, for any moves it may have made in an undeclared alliance with other investors.
Meanwhile, in equally dramatic fashion Lodi has successfully replaced Antonveneta’s entire board with its own candidates. Shareholders of Antonveneta elected in all 15 of Lodi’s nominees, while rejecting all 15 of ABN’s candidates. The development further weakens ABN’s take over position, while greatly strengthening Lodi for a theoretical takeover of its own.
