HVB, UniCredito moving towards takeover deal

10th June 2005, Comments 0 comments

10 June 2005, MUNICH - Italian bank UniCredito Italiano and Germany's second-largest institute HypoVereinsbank (HVB) have worked out the central details of their planned merger in a deal which could be a pure share transaction, banking industry sources said on Friday.

10 June 2005

MUNICH - Italian bank UniCredito Italiano and Germany's second-largest institute HypoVereinsbank (HVB) have worked out the central details of their planned merger in a deal which could be a pure share transaction, banking industry sources said on Friday.

The sources in Munich, speaking on the condition of anonymity, said the HVB supervisory board was to be convened for a special meeting on Sunday to finalise the plans which would create one of the ten largest banks in Europe.

According to the sources, as well as reports in Milan, UniCredito was now expected to make an all-share offer, and is planning to offer five UniCredito shares for each HVB share.

But with UniCredito shares recently having fallen on stock markets, there was a possibility that the Italian bank might have to offer more than five shares. Crucial in the final purchase price will be the two banks' closing stock prices on Friday, the sources said.

Nominally, UniCredito is offering some EUR 16 billion for HVB. The German bank is pushing for guarantees for preserving its operations for a five-year period as well as for being given certain important posts in the management and supervisory boards of UniCredito.

A final takeover offer, once accepted by HVB, would then be subject to approval by UniCredito shareholders, now scheduled to meet around the end of July. The merger could then be completed next October or November, banking industry sources said.

DPA

Subject: German news

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