Intesa, BPER revise terms aiming to avert antitrust hurdles to UBI deal

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Intesa, BPER revise terms aiming to avert antitrust hurdles to UBI deal
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Italian bank Intesa Sanpaolo has increased the number of branches and amount of assets it will sell to rival BPER if its proposed takeover of UBI Banca goes through in an effort to overcome antitrust objections to the deal.

FILE PHOTO: Intesa San Paolo bank headquaters is seen in Turin, Italy, November 7, 2018. REUTERS/Stefano Rellandini

BPER would in this way acquire an additional 4.5 billion euros in assets from Intesa-UBI, adding a total of 26 billion euros in net client loans through the deal and lowering its impaired loan ratio to 8.4% of total lending. BPER said it would pay the lowest amount between a sum equivalent to 0.55 times the core capital of the business it was buying and a value corresponding to 0.78 times the implied multiple paid by Intesa for UBI’s core capital.

Following the preliminary findings from the Italian antitrust authority’s review of the deal, Intesa has been racing to submit stepped-up remedies by a deadline set at 0800 GMT on Monday.

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