UniCredit CEO says no M&A deal after Intesa’s surprise UBI bid

“Let me reconfirm we have NO intention to do any M&A and we will not be drawn into any transactions,” CEO Jean Pierre Mustier said in a letter dated Feb. 19.

FILE PHOTO: Unicredit bank’s logo is seen in the old city centre of Siena, Italy, June 29, 2017. REUTERS/Stefano Rellandini/File Photo

MILAN (Reuters) – The head of UniCredit (CRDI.MI) repeated in a letter to staff on Wednesday that Italy’s biggest bank had no intention of engaging in merger and acquisition deals following Intesa’s (ISP.MI) blitz move to buy rival UBI Banca (UBI.MI).

“Let me reconfirm we have NO intention to do any M&A and we will not be drawn into any transactions,” CEO Jean Pierre Mustier said in a letter dated Feb. 19.

After shelving plan for a cross-border merger deal which he says is not possible given the sector’s depressed market valuations, Mustier has been focusing on boosting investor returns through a combination of dividends and share buybacks.

Reporting by Valentina Za; editing by James Mackenzie