The talks between UniCredito Italiano and the Italian HypoVereinsbank are expected to soon result in a take over bid from the Italians. According to a source at HVB to Welt am Sonntag, if there are no problems, an agreement should be reached this week.
UniCredito will pay the take over with shares. The Italians are said to pay five shares for every HVB share. This would value the German bank on 16.5 billion.
The two banks announced their talks at the end of May. HVB is substantially larger than UniCredito but has gone through hard times. The German bank suffered a loss of approx. 6 billion in the period of 2002-2004. These weak results gave the Italians the chance for a take over.
Source: DFT/Welt am Sonntag