Italian insurance company Cattolica Assicurazioni has agreed to tender all its UBI Banca shares to the takeover initiated by Intesa Sanpaolo, Reuters reported.
Cattolica, which is backed by Warren Buffett’s Berkshire Hathaway, acquired a 1% stake in UBI Banca in February.
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The Verona-based insurer’s stake in the bank is part of the 19% stakes held by the shareholders of the bank, who had recently rejected Intesa’s takeover bid.
Intesa had unveiled an all-paper exchange offer for the hostile takeover of its smaller rival to create the seventh-largest banking group in Eurozone.
The bid was formally launched on 6 July with a closing date of 28 July, the report added.
As per the proposal, Intesa offered 1.7 new shares for each UBI share to the bank’s shareholders.
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By GlobalDataIntesa Sanpaolo first launched the €4.9bn bid to acquire UBI Banca back in February.
Last month, the Italian lender secured the green light from the European Central Bank (ECB) to acquire UBI.
In the same month, Intesa revised its deal terms with local rival BPER Banca to clear antitrust hurdles for UBI Banca acquisition.
Intesa also secured market regulator nod for the UBI Banca acquisition.
However, earlier this month, UBI Banca’s board unanimously rejected the €4.9bn takeover bid from the Intesa.
