Speaking in Frankfurt on Thursday, Chief Executive Olivier Gavalda said Credit Agricole had made its choice: "We decided" against tendering its shares into the bid. Credit Agricole is the biggest investor in Banco BPM, holding just under 30%. The bank has previously indicated it would rather pursue a combination of Banco BPM with Credit Agricole's own Italian businesses than participate in Monte Paschi's offer.
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Monte Paschi CEO Luigi Lovaglio is seeking to run distinct offers for Banco BPM and Banca Generali SpA. That plan hit a wall earlier Thursday when prominent investor Francesco Gaetano Caltagirone came out against it. Two other major shareholders, Delfin and Edizione, have voiced similar opposition, leaving nearly one-third of Monte Paschi's share capital aligned against Lovaglio's proposals.
Lovaglio needs two-thirds support at a shareholder meeting on Oct. 29 to move ahead. People familiar with Credit Agricole's thinking have previously said the bank has been evaluating several paths for Banco BPM, including a possible purchase, and that Gavalda was awaiting the Oct. 29 outcome before committing to a direction. If the vote stalls Lovaglio's plans, expect Credit Agricole's next move to shape how this Italian banking saga touches your savings rather than just shifting trader chatter.
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