Crédit Agricole hikes stake in Creval as launch of takeover bid looms

The Italian unit of French banking group Crédit Agricole SA bought more shares in Credito Valtellinese SpA ahead of the expected formal launch of its takeover bid in April.

On March 1, Crédit Agricole Italia SpA purchased 800,000 additional ordinary shares in Creval, equivalent to 1.14% of the latter's share capital. This brings the Italian unit's stake to 7.83%, on top of the 9.847% stake already held by Crédit Agricole Assurances. The group's potential overall stake in Creval now stands at roughly 17.7%, according to Reuters.

Crédit Agricole's new purchase comes ahead of the expected formal launch of its buyout bid for Creval in April after securing the ECB's approval this month. It already secured the Italian government's approval in February.

The €737 million takeover bid, or €10.50 per Creval share, has been met with resistance by some of Creval's shareholders, with the bank said to be deeming the offer too low. Creval said Crédit Agricole would receive an additional benefit of roughly €350 million from the potential conversion of deferred tax assets into tax credits should the offer be accepted.

Meanwhile, Crédit Agricole Italia said it has requested ECB approval to increase its stake in Creval to as much as 20% regardless of the outcome of the offer.