"We are studying”. Two words that caught the attention of investors. They were uttered by President of Consob, Paolo Savona, answering a question about the possibility of extend UniCredit's takeover bid for Banco BPM in light of the situation of uncertainty created following the TAR ruling and the letter sent by the EU Commission to Italy.
Savona on Unicredit-Banco BPM: "If we have the power, we'll act."
While rumors are that UniCredit CEO Andrea Orcel is working on a request to postpone the offer by 15 days, Consob is evaluating the possibility of a further extension of the BPM takeover bid, after the 30-day extension already granted in May. Savona made this clear during his hearing before the Senate Banking Inquiry Commission. "At this time it would seem that the law leaves us no other space, but if it gives a legal answer it turns out that we have them then we will act" he stated, adding that he has a team of highly skilled lawyers in the Consob offices who are evaluating the matter. Savona added that in the case of the first extension, Consob "decided autonomously" based on the law, without having "responded to Unicredit's request."
Savona: "We can't continue like this regarding the Golden Power."
On the Golden Power “the situation cannot continue like this, it is necessary to clarify and reconcile the Consolidated Law on Finance, the Golden Power and the European treaties", stated in the Senate the head of the Market Supervision Authority, inviting the institutions to open a discussion at which Consob "will give its collaboration" so that we can finally arrive at a legislative clarification.
Savona emphasized that he had already stated that "there is room for clarification between the resolutions of the Golden Power, the Consolidated Law on Finance, and the European treaties. When we have to judge the ranking of the regulations, Consob has no right to intervene." The Authority's president also recalled the Pirelli question: “on the basis of the TUF the Chinese were in control and on the basis of the golden power this control could not be exercised”.
Consob, he explains, at Pirelli's request, was unable to express its opinion, referring to the Consolidated Law on Finance and the Government. Regarding the Unicredit-BPM case, Savona further observed, "the TAR ruling and the European Commission's letter do not call into question the Golden Power but the compatibility of the application of this with respect to other existing regulations in the system, including the Civil Code. We therefore find ourselves in a situation with real foundations: in a world that defends itself with protectionism and abandons globalization, you too must use protectionism." Italy can therefore decide to do so "by those who have the tools to do so," tools that Consob does not have.
