World News

UniCredit CEO says no M&A deal after Intesa’s surprise UBI bid

MILAN (Reuters) – The head of UniCredit <CRDI.MI> repeated in a letter to staff on Wednesday that Italy’s biggest bank had no intention of engaging in merger and acquisition deals following Intesa’s <ISP.MI> blitz move to buy rival UBI Banca <UBI.MI>.

“Let me reconfirm we have NO intention to do any M&A and we will not be drawn into any transactions,” CEO Jean Pierre Mustier said in a letter dated Feb. 19.

After shelving plan for a cross-border merger deal which he says is not possible given the sector’s depressed market valuations, Mustier has been focusing on boosting investor returns through a combination of dividends and share buybacks.

(Reporting by Valentina Za; editing by James Mackenzie)