Casting the net

Madrid, March 30 (Reuters): ABN Amro has launched a 6.3-billion-euro ($8.15 billion) bid for an Italian bank a day after a similar move by BBVA, increasing pressure on the Bank of Italy, which has fended off big foreign predators for over a decade.

As Dutch bank ABN Amro unveiled its all-cash takeover plan for Banca Antonveneta on Wednesday, Spain?s BBVA spelt out the financial logic underpinning its 6.4-billion-euro share offer for Banca Nazionale del Lavoro.

Bank of Italy governor Antonio Fazio, who needs to approve any foreign takeover of the country?s banks, has favoured an Italian-led consolidation of its fragmented banking sector.

But any attempt to block the latest bids will be scrutinised by the European Commission, which wants more cross-border deals.

Analysts said they were concerned about regulatory hurdles and nationalist shareholder resistance facing ABN Amro and BBVA.

Both banks say they are optimistic they will succeed and have detailed cost-savings and profit boosts expected.

If the bids succeed, they would make ABN Amro the number 9 bank in Europe by market value and BBVA the sixth-largest.

Shares in Antonveneta jumped more than 6 per cent to hit 25 euros, the price offered by ABN Amro. BNL shares were up nearly 3 per cent at 2.47 euros, almost in line with BBVA?s proposed swap of one new share per five in BNL.

Shares in Sanpaolo IMI, Italy?s number three bank, rose 2.6 per cent on speculation about possible new takeover targets, should Fazio?s castle walls be breached. BBVA?s Spanish rival Santander Central Hispano owns 8.5 per cent of Sanpaolo.