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Banco BPM says any Credit Agricole deal would need to reflect loss of takeover appeal

By Reuters News

MILAN, Nov 12 (Reuters) - The board of Banco BPM BAMI.MI on Thursday gave CEO Giuseppe Castagna a mandate to engage with Credit Agricole CAGR.PA over its merger proposal, and warned that the terms of a deal would need to reflect the fact that control would effectively shift into the hands of the French bank.

After the initial review of the proposal Credit Agricole unveiled on Monday, Banco BPM said the transaction would deprive it of any takeover appeal, meaning shareholders would need to be adequately compensated.

Credit Agricole on Monday proposed combining Banco BPM - of which it owns 29.6% - with Credit Agricole Italia in a transaction that would leave the French bank holding around 45% of the merged entity and create Italy's third-largest banking group.

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