 Board approval puts pressure on the Bank of Italy |
The board of Italian bank Banca Nazionale del Lavoro (BNL) have approved a proposed takeover offer by Spanish financial giant BBVA. The 6.4 billion euro ($8.2bn; �4.3bn) all-share bid could lead to the first foreign takeover of an Italian bank.
BNL said 12 of the 13 members of its board had voted for the deal. BBVA already holds a 15% stake in BNL.
Despite European Commission pressure, Italy's government and central bank are keen to keep banks in domestic hands.
Up to now, the Bank of Italy has limited outside investment to small share holdings.
Strategic sense
A majority of board members felt the bid was fair and made business sense, BNL said.
Board approval is expected to make it more difficult for the deal to be blocked. "This vote doesn't mean they will sell their shares, but it does make it harder for the Bank of Italy to say no," a banking analyst told Reuters.
"In the past it has opposed bids on the grounds that they are hostile."
The move on Italy's sixth largest bank has been watched closely as a test case of the restrictions in force in Italy.
The approach was followed by the news that the Netherlands-based ABN-Amro is eyeing Banca Antonveneta, Italy's ninth-biggest lender.
Industry observers say the BBVA approach makes strategic sense.
Its main rival in Spain, Banco Santander Central Hispano, sealed its own position as the nation's number one bank with the �9bn purchase of the UK's Abbey in late 2004.
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