Italian private bank Banca Generali has bid for broker Intermonte By Reuters

By Valentina Za and Cristina Carlevaro

MILAN (Reuters) – Italian private bank Banca Generali ( BIT: ) said on Monday it was launching an all-cash takeover offer of 98 million euros ($109 million) for Intermonte to take its private Milanese broker and to direct its services to the customers of the Generali Bank. .

Intermonte shares failed to open trading on the open market and were last seen up 19.6%, broadly a 21.9% premium to Friday’s closing price of €2.49 offered by the Bank Generals whose actions remained fixed.

The deal highlights increased competition in the wealth management sector, where players unable to compete in terms of size are seeking market niches and a specialized product offering.

Banca Generali stated that the acquisition would allow it to bring in Intermonte’s stock and exchange-traded fund (ETF) trading operations, as well as its derivatives business, with the possibility of designing new products.

Intermonte’s investment banking capabilities would be useful to small businessmen who bank with Banca Generali who, in addition to wealth management, also need corporate consulting services, he added.

Wealth managers such as Banca Generali are increasingly focused on succession issues facing the myriad Italian businesses that emerged during the post-war boom.

As founders look to retire and often cannot pass on family business heirs, they have become ideal targets for financial firms that offer both corporate and investment banking services and wealth management solutions.

Like rivals such as Banca Mediolanum and Fineco, Banca Generali operates through a network of financial advisers, without corresponding branches. It manages €99 billion in assets on behalf of 355,000 clients.

It is offering 3.04 euros for each Intermonte share and said, without giving further details, that the cost savings and estimated revenue benefits are such that the return on investment will exceed Banca Generali’s cost of capital.

Banca Generali, owned by Italy’s biggest insurer Generali, said Intermonte’s controlling shareholders, which hold 52 percent of its capital, had already agreed to the offer.

Intermonte said separately that its board would soon begin evaluating the offer.

UBS and law firm Cappelli Riolo Calderaro Crisostomo Del Din & Partners are advising Banca Generali.

(1 USD = 0.9011 euros)