Finance

Credit Agricole Builds Up Shield in Italy Against UniCredit

  • French bank moves to raise holding in Banco BPM to around 15%
  • CEO put in calls to government, other banks on stake increase

The Credit Agricole SA bank headquarters in Montrouge, France.

Photographer: Nathan Laine/Bloomberg
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Credit Agricole SA’s move to boost its stake in Banco BPM was aimed at protecting its business interests in Italy after UniCredit SpA made a takeover bid for its smaller Italian rival.

The French bank’s increased holding — to about 15% from around 10% — would give Chief Executive Officer Philippe Brassac a stronger position in negotiations on commercial agreements with both Banco BPM and UniCredit, people familiar with the matter said, noting that the deals are key for revenue generation in Italy.