By Giuseppe Fonte and Claudia Cristoferi
ROME (Reuters) – Italy reserves the right to use its golden power legislation aimed at shielding strategic assets in regards to UniCredit's plans to take over Banco BPM, Economy Minister Giancarlo Giorgetti said.
Italy's No.2 bank led by CEO Andrea Orcel launched a surprise 10 billion euro ($10.5 billion) offer for Banco BPM on Monday, saying this deal would take precedence over any potential move for Germany's Commerzbank (ETR:CBKG).
The move risks scuppering the government's plans to form a third strong banking player alongside Intesa Sanpaolo (OTC:ISNPY) and UniCredit through a merger of Banco BPM with state-owned Tuscan lender Monte dei Paschi di Siena (MPS).
Orcel told investors that UniCredit still had no interest in MPS, having walked away from taking the bailed-out peer off the state's hands in 2021, straining relations with government authorities.
Giorgetti told reporters in parliament that Unicredit (BIT:CRDI)'s offer had been "communicated but not agreed with the government," and he appeared to warn Orcel that with his manoeuvres in both Germany and Italy he may be biting off more than he can chew.
"As Carl von Clausewitz said, the safest way to lose the war is to engage on two fronts," the minister said.
Prime Minister Giorgia Meloni this month paved the way for Rome's ambitious project for a third banking group by selling a chunk of MPS to Banco BPM.
Deputy Prime Minister Matteo Salvini, the leader of the League party of which Giorgetti is a member, also expressed clear reservations about Unicredit's bid.
"I thought UniCredit wanted to grow in Germany. I don't know why it changed its mind," he told reporters.
"What's important to me is that Banco BPM and MPS do not get into difficulties," he added.
UniCredit has recently built a potential 21% stake in Commerzbank, a move that sparked widespread opposition in Germany and speculation about if, when and how it would try to buy all of the Frankfurt-based bank.
Orcel told investors the unsolicited offer had been prompted by Italian banking consolidation heating up after Banco BPM this month bought a 5% stake in MPS and launched a bid for fund manager Anima Holding.
Giorgetti said the government will carefully make its assessments when UniCredit formalises the terms of the bid.
The Italian government could use its powers to set some conditions on the deal, a source familiar with the matter told Reuters, while an outright veto would be a tough option as the European Central Bank (ECB) backs bank mergers and EU treaties promote the free movement of capital.
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