MILAN, Jan 13 (Reuters) – Banco BPM is looking to increase seats reserved for minority shareholders as it prepares to appoint a new board, two sources said, after France’s Credit Agricole strengthened its ties with the Italian bank.
Credit Agricole said late on Monday it had received European Central Bank approval to raise its stake in Banco BPM above 20%, cementing its position as a long-term shareholder in Italy’s third-largest bank.
The main investor in BPM, Credit Agricole last year helped the Italian bank thwart a takeover attempt by UniCredit during a hectic consolidation wave in Italy.
It reiterated it will keep its holding below the mandatory takeover threshold. The government is due to change the threshold to 30% for all listed companies from 25% for large ones and 30% for smaller firms.
Banco BPM amended its board bylaws and sought ECB approval late last year, one source said. The changes double to six the number of directors minority shareholders can appoint to the 15-member board.
Currently, the outgoing board names up to 12 directors and minority investors at least three. A second source confirmed the increase without giving details.
The new board will be named in April with full-year results. Credit Agricole, which first invested in BPM in 2022 to protect commercial ties, now seeks stronger board representation after raising its stake, a third source said.
The outgoing board will file a list of candidates to appoint a majority of board members, including the chief executive and chairman. CEO Giuseppe Castagna, who has led BPM since the bank was formed in January 2017 from the merger of two regional lenders, is expected to be reappointed for another three years.
With its 20.1% stake, Credit Agricole could either back the outgoing board’s list of nominees or file a separate one, which would reduce chances of board representation for fund shareholders, one investor said.
(Reporting by Valentina Za and Andrea Mandala; Editing by Emelia Sithole-Matarise)
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