Unicredit and General Electric (GE) may sign contract concerning the acquisition of mini-BPH as early as on Wednesday or Thursday. The Italians would like to have the contract before “Capital Markets Day”, the summit of Unicredit group starting on Wednesday in Milan. However, the Commission of Bank Supervision (KNB) has not yet approved of Unicredit’s splitting of Bank BPH and merging part of it with Pekao (part of Unicredit group). KNB expects the Italians to send a written confirmation concerning the buyer of mini-BPH.
GE is not in a hurry. The Americans don’t like some provisions and keep negotiating.
“First of all, GE does not like the idea that the whole corporate banking goes to Pekao. They don’t like the fact that the headquarters of Bank BPH will go to Pekao while mini-BPH will have an old building, completely below the standards of the Americans”, a person close to the transaction said.
There are at least two solutions here: after the splitting of Bank BPH, the corporate unit may be split and sold back to mini-BPH.
“Otherwise, the Italians will have to accept a lower price for mini-BPH. GE may be looking for this solution”, “PB” source added.
It is estimated that mini-BPH will cost EUR 1-1.5 billion.