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UniCredit states ready to take a seat with Credit Agricole over Banco BPM

UniCredit is all set to take a seat with Credit Agricole, a representative for the Italian bank stated in a LinkedIn post after the French loan provider increased its possible stake in Unicredit's takeover target Banco BPM.

UniCredit's quote for its smaller peer prompted Credit Agricole to state on Friday it had entered derivatives that would raise its stake in BPM to 15% from 9.9% once the European Reserve bank offers its thumbs-up.

The other day's news about Credit Agricole's increased stake in BPM changes nothing for UniCredit, the representative for UniCredit stated on social media network LinkedIn.

We were always prepared to negotiate with CA, as this would have been needed whatever the scale of their shareholding.

Sources with understanding of the French bank's method have told Reuters Credit Agricole's focus is to safeguard the business collaborations that enable it to sell its products in Italy. Credit Agricole has actually ruled out a complete buyout of BPM, in which it is the single most significant shareholder. UniCredit's early move made Credit Agricole's financial investment more expensive and more complicated. BPM shareholders need to not welcome this development, the UniCredit spokesperson stated.

UniCredit last month declared a seat at Italy's bank debt consolidation table by introducing a 10 billion euro ($ 11 billion). all-share unsolicited bid for Banco BPM.

The relocation ambushed plans by the Rome government to broker a. merger in between BPM and state-backed Monte dei Paschi di Siena . Both banks partner with fund supervisor Anima Holding. , which Banco BPM remains in the process of taking over.

On Saturday,

sources informed Reuters th

at Credit Agricole had got informal support from the Rome. federal government prior to announcing its increased stake in Banco BPM.

The UniCredit spokesperson warned BPM shareholders they. need to watch out for a possible combination of BPM with the. Italian company of Credit Agricole, or of any effort to merge. BPM with Monte dei Paschi.

A quote for Monte dei Paschi is a possible defence technique. for BPM, which has spurned UniCredit's deal as too low-cost.

Credit Agricole's most likely options would be to merge BPM. with Credit Agricole Italia

(source: Reuters)