There's a political wrinkle in UniCredit's sale of Pioneer Investments [profile].

Jean Pierre Mustier UniCredit Chief Executive Officer

Three unnamed sources tell Reuters that Jean-Pierre Mustier, CEO of giant Italian multinational bank UniCredit, will not pick the winning bidder for its multinational asset manager, Pioneer, until after Italian voters weigh in on controversial proposed constitutional reforms via a referendum scheduled for December 4. Yet UniCredit is expected to reveal its Pioneer plans in London on December 13, just nine days after the referendum, as part of the outcome of Mustier's strategic review of UniCredit.

Reports have previously put the Pioneer price tag at $3.35 billion or more. Reuters reports that, per unnamed sources, UniCredit may need to raise up to $18 billion. Yet the wire service wonders if the referendum could throw a monkey wrench in UniCredit's capital raising efforts like divesting from Pioneer.

"The fate of the Italian government likely hinges on the outcome of the referendum, and political instability in case of a 'No' vote could overshadow UniCredit's fundraising efforts," Reuters writes.

Previous reports have outed at least nine potential bidders for Pioneer. 

Edited by: Neil Anderson, Managing Editor


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