MILAN (Reuters) -The Italian arm of Credit Agricole has secured the targeted acceptance of at least two thirds of capital in its buyout offer for Italy’s Creval, a source familiar with the matter said.
The 855 million euro ($1 billion) bid concludes on Friday and acceptance stood just above 48% of Creval’s capital on Thursday, rising above the majority threshold when including a 2.45% stake Credit Agricole Italia already owned.
To boost take-up after the offer was initially spurned by many Creval investors and the bank itself, Credit Agricole lifted the price by 16% to 12.2 euros, saying it would pay 12.5 euros a share only if more than 90% of capital was tendered.
With acceptance still low, France’s no.2 bank was forced to waive the 90% threshold and set the final price at 12.5 euros, while extending the offer through Friday.
The acquisition of Creval allows Credit Agricole Italia to double its market share in Italy’s wealthiest areas at a time when the country’s fragmented banking sector is consolidating.
($1 = 0.8297 euros)
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