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UniCredit Has Flexibility for Banco BPM Deal, Deutsche Bank Says

UniCredit SpA and Banca Monte dei Paschi di Siena SpA bank branches in Siena, Italy, on Monday, Sept. 20, 2021.

UniCredit SpA and Banca Monte dei Paschi di Siena SpA bank branches in Siena, Italy, on Monday, Sept. 20, 2021.

Photographer: Alessia Pierdomenico/Bloomberg

UniCredit SpA’s new shareholder remuneration policy gives it leeway to pursue an acquisition like a takeover of domestic rival Banco BPM SpA, according to a Deutsche Bank AG analyst. 

Significantly leveraging buybacks to reward investors increases Milan-based UniCredit’s flexibility in mergers and acquisitions, Deutsche Bank analyst Giovanni Razzoli wrote in a report Wednesday. Instead of cancelling the shares, UniCredit could use them as an acquisition currency, according to the report.