Italian bank Capitalia has rejected a takeover approach made by Dutch financial giant ABN Amro, according to reports.
Capitalia is said to have rejected the offer because it did not want to become a unit of a foreign bank. The Italian financial sector is traditionally resistant to mergers and takeovers from foreign investors, preferring to maintain its close links to local communities. Italian authorities have recently encouraged the country’s banks to merge with each other or face the threat of a foreign takeover.
I have decisively said ‘no’ because we would have become only a retail division, Capitalia chairman Cesare Geronzi was quoted by AFX News as saying.
ABN Amro, which is already a shareholder in Capitalia, seems to be intent on increasing the strength of its Italian business after it recently acquired the medium-sized bank Antonveneta.