Italy's government is ready to use its special vetting powers if UniCredit's proposed takeover of smaller rival Banco BPM goes against the national interest, the prime minister said on Monday. UniCred

With its plans for Germany's Commerzbank seemingly stalled, UniCredit, Italy's second-largest lender, on Monday launched a bid to buy its rival BPM for 10.1 billion euros ($10.6 billion).

"Italy’s UniCredit makes buyout offer for Banco BPM" was originally created and published by Retail Banker International, a GlobalData owned brand.

UniCredit's bid for BPM also throws a spanner in the works for Italy's government, which had advanced plans for a merger of BPM with rival Monte dei Paschi di Siena which it saw as strengthening its banking sector without harming competition.

UniCredit SpA has hired Deloitte LLP to advise Italy’s second-biggest bank on its takeover bid for Banco BPM SpA, people familiar with the matter said.

The Italian Treasury has denied a report that it is drafting an emergency decree to counter UniCredit’s (OTCPK:UNCFF)(OTCPK:UNCRY) 10B euro ($10.6B) bid for Banco BPM, Reuters reported late Friday. UniCredit made the offer for the smaller rival on Monday,

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.