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. Last Updated: 07/27/2016

UniCredit to Take Over Capitalia SpA

MILAN, Italy -- Capitalia SpA's main shareholders approved a 21.9 billion euro ($29.6 billion) takeover bid by UniCredit SpA, Italy's biggest bank, a member of the investor group said.

UniCredit will offer 1.12 of its own shares for each Capitalia share, Giovanni Puglisi, head of Capitalia shareholder Fondazione Banco di Sicilia, said Sunday. That would value Capitalia shares at 8.41 euros each, or 6.2 percent more than the closing price May 17.

"The decision was unanimous,'' Puglisi said. The Banco di Sicilia foundation owns 3.2 percent of the Rome-based lender.

UniCredit, led by chief executive officer Alessandro Profumo, has expanded in Germany, Austria and Russia, spending more than $25 billion on takeovers in the past two years. Capitalia is the largest remaining target in Italy where lenders can charge among the highest fees in Europe.

Matteo Arpe, Capitalia's chief executive officer, will resign from his position, effective May 31, Italian news agency Ansa reported, without saying citing a source. A Capitalia spokesman declined to comment on the report of Arpe's resignation.

Capitalia is controlled by a group of investors, led by ABN Amro, that own a combined 31 percent of the Rome-based bank and set the company's strategy. The investor group met Sunday in Rome.

The Capitalia investor group approved the UniCredit offer unanimously, it said Sunday in an e-mailed statement, without providing any financial details.