Italy said on Friday it had cleared with conditions UniCredit's (CRDI.MI) takeover bid for rival Banco BPM (BAMI.MI), with sources saying a speedier exit from Russia was among demands set by Rome for the bank led by CEO Andrea Orcel.
UniCredit's presence in Russia is a bone of contention also with the European Central Bank, which last year ordered the Italian lender to hasten its disentanglement.
UniCredit, which plans to launch its 14 billion-euro ($16 billion) all-share bid for BPM on April 28, had no immediate comment.
The government of conservative Prime Minister Giorgia Meloni vetted the BPM deal under special "golden power" rules allowing it to block or set conditions on foreign and domestic takeovers in strategic sectors such as energy, telecommunications and banking.
The scope of such rules in Italy for banking deals is under scrutiny by the European Commision.
The government said in a statement it was protecting strategic interests for national security in setting the conditions, confirming what three sources familiar with the matter had said earlier.
Foreign Minister Antonio Tajani campaigned against imposing any conditions saying they could expose the government to legal risks, one source said, signalling a split in the government on the issue.
Other demands are expected to focus on bank branches to ensure services to customers and indirectly preserve jobs should the takeover be finalised, a second source said.
UniCredit is among only a handful of international banks that failed to leave Russia after the Ukraine war broke out in 2022, with Orcel saying he refused to damage shareholders by foregoing a fair price for the assets.
The bank has accelerated the reduction of its Russian exposure to meet ECB demands.
In an indirect reference to Orcel on Thursday, Economy Minister Giancarlo Giorgetti said bankers were rightly concerned with profits, but ministers had to act in the general interest.
DROP THE BID?
By swooping on Banco BPM in November, Orcel derailed the government's plans to promote a tie-up between BPM and state-backed Monte dei Paschi di Siena (BMPS.MI). MPS has since launched an offer for merchant bank Mediobanca MDBI.MI.
UniCredit has the right to drop the BPM bid because Banco has raised the price of its own bid for fund manager Anima Holding (ANIM.MI) and clinched the purchase despite being denied favourable regulatory capital treatment.
Orcel plans to wait until the very end, possibly as late as June 30, just before the payment date, to decide what to do. Before the latest bid, UniCredit had twice been close to moving on Banco BPM since Orcel took over in 2021, but Orcel decided against the acquisition. Bankers do not rule out he could walk away a third time.
Orcel has also built stakes in insurer Generali (GASI.MI) and in German rival Commerzbank (CBKG.DE).
He says the two stakes are currently only financial investments, though he has called for a merger with Commerzbank.
Orcel has not provided any indications on his strategy regarding Generali. A shareholder vote on April 24 could shed some light on Orcel's stance towards the insurer.
($1 = 0.8780 euros)
