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Banco BPM clears governance overhaul, opening door for bigger Credit Agricole role
Banco BPM clears governance overhaul, opening door for bigger Credit Agricole role
About this update from Banco Bpm Spa
By Andrea Mandala Italy's Banco BPM MIL:BAMI said on Monday its shareholders had approved by a very large majority new by-laws, in a move that gives investor Credit Agricole EURONEXT:ACA the chance to boost its presence on the Milanese bank's board. The new rules for appointing the board, which last week received a green light from the European Central Bank, passed with 95.38% of votes cast at a shareholder meeting called to update Banco BPM's governance structure ahead of the April board renewal.Cementing its position as a long-term investor in Italy's third-largest bank, Credit Agricole EURONEXT:ACA last month said it had received ECB approval to raise its stake above 20%. The French banking group, which first invested in BPM in 2022 to protect its commercial partnerships with the Italian lender, is seeking stronger board representation after increasing its stake, sources have previously told Reuters.Under the new framework, minority shareholders can now secure up to six seats on the 15-member board, up from three previously.BPM's outgoing board is expected to file its own slate of candidates to appoint a majority of directors, including the chief executive and the chairman.That slate can claim up to 12 seats if it secures the most votes. The actual number of seats hinges on how many votes the main two minority lists receive.At the helm since 2017, CEO Giuseppe Castagna is widely expected to get another three-year mandate in the April vote, in which Credit Agricole will play a pivotal role.The French bank could either support the outgoing board's list or submit its own. If it backs the board's list, the French bank is expected to obtain up to three seats, proportional to its stake, leaving room for fund shareholders to appoint their representatives.If it files its own list, it could claim up to four seats under BPM's revamped governance system, making it difficult for fund shareholders to name more than one director.