Generali, BPCE drop break-up fee in asset management deal- report

Core Viewpoint - Generali and BPCE have removed the €50 million break-up fee from their proposed asset management merger, reflecting ongoing uncertainties regarding the deal's completion due to shareholder opposition and government concerns [1][3]. Group 1: Merger Details - In January, Generali and BPCE signed a non-binding memorandum of understanding to merge their asset management businesses, aiming to create a joint venture managing over €1.9 trillion in assets [2]. - The merger has faced resistance from two of Generali's largest investors, raising concerns in Italy about the potential outflow of domestic savings [2]. Group 2: Government and Investor Influence - The Italian government has the authority to veto deals involving strategic national assets, which adds another layer of complexity to the merger [3]. - Generali's primary investor is Mediobanca, followed by Delfin and Francesco Gaetano Caltagirone, both of whom have expressed strong opposition to the merger with BPCE [4]. Group 3: Previous Attempts and Market Context - Mediobanca previously attempted to acquire Generali's private banking division for €6.3 billion, but this bid was blocked by its shareholders [5].