Business
UniCredit Threatens to Abandon €10 Billion Takeover of Banco BPM Amid Escalating Tensions
UniCredit, Italy’s largest bank, has warned that it will walk away from its proposed €10 billion acquisition of Banco BPM if the smaller bank proceeds with an increased bid to acquire Anima Holding SpA. The takeover battle, which has intensified in recent weeks, has led to a public war of words between UniCredit CEO Andrea Orcel and Banco BPM CEO Giuseppe Castagna.
UniCredit’s Countermove
UniCredit originally made its €10 billion takeover offer for Banco BPM in November 2024, shortly after Banco BPM made a €1 billion bid to acquire Anima Holding, an asset management firm. Banco BPM sought to boost its asset management fee income as interest rates declined.
However, UniCredit’s bid has complicated Banco BPM’s ability to finalize its offer for Anima, as Italian regulations prevent a bank that is the target of a takeover from pursuing its own acquisitions without shareholder approval.
Banco BPM’s shareholders are set to vote on February 28 to decide whether to increase their offer for Anima from €6.2 per share to €7 per share. If successful, Banco BPM’s market valuation would rise above €13 billion, exceeding UniCredit’s acquisition offer.
Orcel has made it clear that UniCredit will not overpay for Banco BPM and has hinted that he may withdraw the takeover offer altogether if Banco BPM’s bid for Anima moves forward.
Regulatory Hurdles and Financial Risks
To proceed with the Anima acquisition, Banco BPM would need to secure regulatory approval for favorable capital treatment, known as the Danish Compromise. However, this would require a lengthy approval process from the European Central Bank (ECB).
UniCredit has argued that if Banco BPM’s shareholders approve the increased bid for Anima, the bank’s CET1 capital ratio could decline by approximately 268 basis points, adding significant financial strain.
In a strongly worded statement, UniCredit said:
“In case the Offer were 100% successful and the Danish Compromise not granted, BPM’s CET1 ratio would decline by approximately 268bps, adding to the financial burden of an increased consideration.”
Escalating Tensions Between Bank CEOs
Banco BPM’s CEO Giuseppe Castagna has fired back at UniCredit’s claims, calling them “very dangerous” and “fake news.”
In an interview, Castagna accused Orcel of trying to manipulate Banco BPM’s stock price and influence the shareholder vote. He stated:
“The allegations that we are not going to get the Danish Compromise is completely fake news. The guy is trying to play a game. He wants to depress our stock in favor of his own stock. We will respond legally to these kinds of allegations.”
If Banco BPM secures shareholder approval for its increased bid, two major Anima investors—Poste Italiane and private equity fund FSI—have already indicated they will sell their stakes to Banco BPM, according to Reuters.
UniCredit’s Final Warning
Despite the mounting tensions, UniCredit emphasized that it has not yet made a final decision on whether to withdraw its offer.
In its statement, the bank said:
“Notice of the above is given to the public to ensure that BPM shareholders can make their own decisions in full awareness of the risks and uncertainties underlying the proposals that have been made to them and the possible consequences of their decisions.”
With the shareholder vote just weeks away, the fate of both Banco BPM’s bid for Anima and UniCredit’s takeover offer remains uncertain.
Business
World’s Largest EV Manufacturer Recalls Over 375,000 Vehicles for Power Steering Issue
The world’s largest electric vehicle manufacturer is recalling more than 375,000 vehicles due to a power steering issue that could impact driver control, according to the US National Highway Traffic Safety Administration (NHTSA).
The recall affects certain 2023 Model 3 and Model Y vehicles, with the NHTSA reporting that the printed circuit board responsible for electronic power steering assist may become overstressed. This could result in a loss of power steering assistance when the vehicle stops and then accelerates again.
A loss of power steering assistance requires drivers to exert greater effort to steer the vehicle, particularly at low speeds, increasing the risk of accidents.
The EV manufacturer has not disclosed the number of incidents linked to the issue but stated that it is working to address the problem promptly. Owners of affected vehicles will be notified and offered free repairs, including replacement of the faulty circuit board if necessary.
The NHTSA advises vehicle owners to monitor their dashboard warning lights and seek service immediately if they notice any changes in steering performance. The agency is continuing to monitor the situation to ensure compliance and safety.
This recall comes as the electric vehicle industry faces heightened scrutiny over software and hardware reliability. Despite the setback, industry analysts believe the company’s proactive recall could help maintain customer trust and highlight its commitment to safety and product quality.
Business
Alibaba Reports Fastest Revenue Growth in Over a Year Amid AI Boom
Chinese e-commerce giant Alibaba Group Holding has reported its fastest revenue growth in more than a year, driven by advancements in artificial intelligence and cloud computing. The company’s revenue for the quarter ending in December rose 8% to 280.2 billion yuan (€36.65 billion) compared to the previous year, surpassing analysts’ expectations. Net income surged to 48.9 billion yuan (€6.41 billion), boosting its New York-traded stock by over 12% following the earnings announcement.
Alibaba CEO Eddie Wu highlighted the company’s commitment to AI, stating during an earnings call that Alibaba plans to “aggressively invest” in AI and cloud infrastructure over the next three years, with planned spending expected to exceed its total investments of the past decade. Wu emphasized that artificial general intelligence (AGI), which aims to match or surpass human intelligence, is Alibaba’s primary focus, describing the opportunity as a “once-in-several-decades” transformation for the industry.
The company has already integrated AI into its cloud products, resulting in a 13% revenue growth for its cloud division—the fastest pace in two years. Alibaba’s international commerce unit, including platforms like AliExpress and Lazada, saw a 32% increase in revenue, driven by robust cross-border business performance.
Alibaba’s AI strategy comes amid growing competition between the U.S. and China in the AI sector. In January, Alibaba introduced its latest Qwen AI models, which performed well in industry benchmark tests, positioning the company among China’s leading AI innovators. Additionally, Alibaba is collaborating with Apple to integrate its AI technology into Chinese iPhones.
The company’s resurgence follows a challenging period marked by regulatory crackdowns in China’s technology sector. In 2020, authorities halted the IPO of Alibaba’s financial affiliate, Ant Group, and imposed a record $2.8 billion (€2.67 billion) fine for anti-monopoly violations. However, recent signs suggest a more supportive stance from Beijing. Chinese President Xi Jinping recently met with prominent entrepreneurs, including Alibaba cofounder Jack Ma, signaling renewed government backing for the tech industry.
Amid these developments, Alibaba’s stock has surged by over 60% this year, with U.S.-listed shares rising 8.5% to $136.58 (€130.41) during morning trading. With its focus on AI and cloud computing, Alibaba is well-positioned to capitalize on the growing demand for advanced technology in China and beyond.
Business
Airbus Reports Strong Orders and Steady Growth Despite Supply Chain Challenges
European aircraft manufacturer Airbus has reported solid financial results for 2024, with strong order intake and increased deliveries, further extending its lead over struggling competitor Boeing.
In its annual earnings update on Thursday, Airbus revealed that revenues rose to €69.23 billion, up from €65.45 billion in the previous year. However, adjusted earnings before interest and tax (EBIT) dropped 8% to €5.35 billion, compared to €5.84 billion in 2023. The decline was attributed to restructuring costs in the company’s space division.
Aviation and tourism expert Anita Mendiratta praised Airbus’ performance, stating that the results highlight the company’s focus on fundamentals. “The strong order intake across all divisions signifies sustained market confidence—critical in 2024, the first full year since the pandemic when trade not only recovered but surged,” she said.
Aircraft Deliveries and Orders
Airbus delivered 766 commercial aircraft in 2024, an increase from 735 in 2023, thanks to a strong year-end push. Gross commercial aircraft orders reached 878, with net orders totaling 826 after cancellations.
Looking ahead, Airbus has set a delivery target of 820 commercial aircraft for 2025—a figure lower than its record 863 deliveries in 2019. While some analysts view this target as conservative, Matt Dorset, equity analyst at Quilter Cheviot, noted that it reflects ongoing supply chain issues. “The company will want to avoid another cut to guidance, as occurred in 2024,” Dorset explained.
Airbus lowered its delivery targets in June 2023 due to supply chain disruptions involving engines, aerostructures, and cabin equipment, as well as additional costs in its space systems division. The company continues to face challenges, particularly with Spirit AeroSystems, which is affecting the production of the A350 and A220 models.
Financial Outlook and Dividends
For 2025, Airbus forecasts adjusted EBIT of approximately €7 billion and free cash flow before customer financing of around €4.5 billion. These projections do not account for potential tariffs that could be imposed by a future Donald Trump administration in the United States.
Despite ongoing challenges, Airbus announced an increased dividend of €2 per share for 2024, up from €1.80 the previous year. Additionally, the company proposed a special dividend of €1 per share, with a payment date set for April 24, 2025.
Airbus Extends Lead Over Boeing
Airbus’ stable financial performance contrasts sharply with the difficulties faced by Boeing, which reported a loss of $11.8 billion (€11.3 billion) in 2024—its worst result since 2020. Boeing’s setbacks include a series of safety incidents, strikes, and challenges within its defense programs, further solidifying Airbus’ position as the world’s leading aircraft manufacturer.
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