Consequently, the changes could fuel debate over industry consolidation to target greater returns and economies of scale encouraging mergers and acquisitions, according to Mediobanca Securities. Specifically, the reforms would turn these types of banks into possible takeover targets almost instantly. For instance, the new rules could be a catalyst for a potential merger between UBI Banca and Banca Monte dei Paschi di Siena. [Greece Slide Hurts Italy, Spain ETFs]
EWI includes a 2.8% position in Mediobanca Banca Di Credito and 1.6% in Banca Monte dei Paschi di Siena. Banco Popolare, Italy’s fourth largest bank, which makes up 2.5% of EWI, also jumped 5.7% Tuesday.
“The abolition of the per-capita voting right would transform Popolari banks into public companies,” Riccardo Rovere, Mediobanca SpA (MB), said in a note, according to Bloomberg. “This would likely reignite the debate on consolidation, also because the merger between Popolari banks and joint stock companies could be facilitated.”
iShares MSCI Italy Capped ETF
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