Banco BPM shares in Italy rise as Credit Agricole increases its ownership.

Following the announcement late last week by French lender Crédit Agricole that it was increasing its holding in the Italian bank, Banco BPM shares surged on Monday.Early trading saw Banco BPM shares increase more than 2%, the most since January 2016. On Friday, Crédit Agricole said that it had begun the process of increasing its ownership in Banco BPM.If approved by Italian officials, this would increase its ownership from 9.9% to 15.1%.Additionally, the bank stated that it had no plans to issue a tender offer for Banco BPM stock, thus it would not be pressuring stockholders to sell. Although the French lender is now Banco BPM's top investor, this suggests that a large-scale takeover is not on its near agenda.

In a statement, the French bank stated, "This transaction is consistent with Crédit Agricole's strategy as a long-term investor and partner of Banco BPM." "It strengthens the solid industrial partnerships in consumer finance and in non-life, personal protection and creditor protection insurance, and highlights Crédit Agricole's appreciation of Banco BPM's intrinsic qualities, ie a solid business franchise with positive financial prospects."