Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

Unione di Banche Italiane / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/intesa-sanpaolo-spa" target="_blank" data-smartkarma-citation="entities:21200:1" rel="noopener">Intesa Sanpaolo (ISP IM)</a> today announced one of the largest and certainly one of the boldest bank takeovers in Europe in the past ten years in an all-share deal for <a href="https://www.smartkarma.com/entities/unione-di-banche-italiane-spa" target="_blank" data-smartkarma-citation="entities:21233:1" rel="noopener">Unione Di Banche Italiane (UBI IM)</a>, Italy's 5th largest lender and probably the strongest among the second tier.
The thing is, it's hostile/unsolicited.
And it's all shares - which is relatively unusual - executed through a Voluntary Public Exchange Offer.
Various media are reporting that the deal was launched without informing UBI's board, on the day after UBI presented its 2022 Strategic Plan (which among other things included cutting 2000+ jobs, the closure of 175 branches in the next three years, and a plan for a 40% payout ratio). 
The announcement by Intesa Sanpaolo is laudatory of UBI:
<blockquote>
Intesa Sanpaolo considers UBI Banca amongst the best Italian banks. UBI Banca has local entrenchment in the most dynamic regions of the country, enjoys outstanding results that have been achieved thanks to the excellent job of both its CEO and its management team, and has a sound Business Plan. All this can continue to be achieved and be indeed further enhanced in the combined Group. UBI Banca stands out for its similarities with Intesa Sanpaolo, specifically as regards the business model and the corporate values – many UBI Banca managers have had previous job experience at the Intesa Sanpaolo Group. In view of the shared corporate values in terms of sustainability and inclusion and social and environmental responsibility, a new unit of the combined Group’s Impact Bank will be based in Brescia and in Bergamo. The presence of the large number of Italian shareholders of UBI Banca, specifically the foundations, among the shareholders of the combined Group would reinforce the shared values, including in terms of shareholder base.
</blockquote>
The Intesa announcement is <a href="https://group.intesasanpaolo.com/content/dam/portalgroup/repository-documenti/investor-relations/Contenuti/RISORSE/Documenti%20PDF/ubi/20200217_UBI_Ba_uk.pdf" target="_blank" rel="noopener">here</a>, and the UBI 2022 Strategic Plan is <a href="https://www.ubibanca.it/contenuti/file/UBI%20Banca%20-%20Business%20Plan%202022%20DEF%20-%2017022020.pdf" target="_blank" rel="noopener">here</a>.
Early days, and UBI is trading 5% through terms almost immediately, on what could be short-covering given the declared shorts in the name. 
More discussion below.

Intesa Sanpaolo (ISP IM) today announced one of the largest and certainly one of the boldest bank takeovers in Europe in the past ten years in an all-share deal for Unione Di Banche Italiane (UBI IM), Italy's 5th largest lender and probably the strongest among the second tier.
The thing is, it's hostile/unsolicited.
And it's all shares - which is relatively unusual - executed through a Voluntary Public Exchange Offer.
Various media are reporting that the deal was launched without informing UBI's board, on the day after UBI presented its 2022 Strategic Plan (which among other things included cutting 2000+ jobs, the closure of 175 branches in the next three years, and a plan for a 40% payout ratio). 
The announcement by Intesa Sanpaolo is laudatory of UBI:

Intesa Sanpaolo considers UBI Banca amongst the best Italian banks. UBI Banca has local entrenchment in the most dynamic regions of the country, enjoys outstanding results that have been achieved thanks to the excellent job of both its CEO and its management team, and has a sound Business Plan. All this can continue to be achieved and be indeed further enhanced in the combined Group. UBI Banca stands out for its similarities with Intesa Sanpaolo, specifically as regards the business model and the corporate values – many UBI Banca managers have had previous job experience at the Intesa Sanpaolo Group. In view of the shared corporate values in terms of sustainability and inclusion and social and environmental responsibility, a new unit of the combined Group’s Impact Bank will be based in Brescia and in Bergamo. The presence of the large number of Italian shareholders of UBI Banca, specifically the foundations, among the shareholders of the combined Group would reinforce the shared values, including in terms of shareholder base.

The Intesa announcement is here, and the UBI 2022 Strategic Plan is here.
Early days, and UBI is trading 5% through terms almost immediately, on what could be short-covering given the declared shorts in the name. 
More discussion below.

Intesa SanPaolo Swoops on UBI for a Win-Win Deal