Unicredit Overhaul

Time For Tough Decisions

Federico Ghizzoni has some tough choices to make.
  • Why it matters

    Why it matters

    While the Italian bank is not expected to intensify its restructuring of HVB, a potentially radical makeover of Bank Austria signals that Unicredit’s strategy of owning largely independent subsidiaries may have reached its limits.

  • Facts


    • Next Wednesday, Unicredit’s chief executive will present investors with a restructuring plan, which could include 12,000 job cuts – 2,000 more than previously announced.
    • According to sources, the plan will not intensify restructuring measures already in place at HVB, but it could carve up Bank Austria.
    • A radical restructuring at Bank Austria would shock the country, although its politicians remain silent for now.
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Federico Ghizzoni is known for his soft touch when it comes to restructuring. Unicredit subsidiaries Bank Austria and Germany’s Hypo-Vereinsbank (HVB) are about to put that deft touch to the test.

The chief executive of Italy’s Unicredit has some difficult decisions to make. Next Wednesday, he will present investors with a restructuring plan for Unicredit, Italy’s largest and most international bank.

In the face of capital market realities, Mr. Ghizzoni could be forced into some drastic moves. When it comes to Bank Austria and HVB, Germany’s third-largest bank, investors seem to be calling for blood.

“Unicredit must give up its growth ambitions and simplify its structures through the sale of either Bank Austria or Munich’s Hypo-Vereinsbank,” said Eoin Mullany of Berenberg Bank.

Mr. Mullany is one of several analysts calling for such a move, though they are unlikely to get what they want.

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