The Italian Treasury on Friday denied drafting an emergency decree to counter UniCredit’s takeover bid for smaller rival Banco BPM after the Financial Times reported Rome was considering this option.

On Monday, UniCredit announced an unsolicited €10 billion takeover offer for BPM, which the target bank has since rejected. It said the premium offered was unusual and that the bid created problems for its acquisition of fund manager Anima Holding.

UniCredit's bid for BPM also throws a spanner in the works for Italy's government, which had taken steps to merge BPM with rival Monte dei Paschi di Siena to strengthen its banking sector without harming competition.

According to the FT, among the options Prime Minister Giorgia Meloni's government is considering, is an emergency decree which would allow Banco BPM to avoid the so-called passivity rule, which stops managers of a takeover target from taking any steps to stave off the bid without shareholders' approval. In BPM's case, the rule prevents it from raising the price of its bid for Anima and increasing its stake in Monte dei Paschi.

“The report of a decree published by the FT is totally groundless,” the Treasury statement said.

Italy’s Economy Minister on Tuesday said that Italy reserved the right to use its golden power legislation aimed at shielding strategic assets in the context of UniCredit’s move, “communicated but not agreed with the government”. – Reuters

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