ROME (Reuters) – Italy is asking UniCredit to reveal the full terms of its planned takeover of Banco BPM, under the European Union states’ right of review over investments in strategic sectors, reports report. sources.

Two people familiar with the matter said on condition of anonymity that the Italian government had rejected UniCredit’s request for a preliminary assessment – a “pre-notification” – for the Banco BPM project. A pre-notification describes in particular the operation and the companies which are parties to it.

The move suggests UniCredit will face long delays before its unsolicited offer of 10 billion euros for all shares is approved. This could also help BPM organize its parade, according to a third source.

A prolonged review could complicate the plans of UniCredit CEO Andrea Orcel, who also took a stake in Commerzbank and said the timetables of the two potential buyouts would not overlap.

UniCredit did not immediately respond to a request for comment.

The bank’s bid for BPM has angered the Italian government because it could jeopardize the planned merger between BPM and state-backed Monte dei Paschi di Siena, aimed at creating a competitor to heavyweights UniCredit and Intesa Sanpaolo.

A German government source told Reuters that Berlin would not subject UniCredit’s investment in Commerzbank to prior review.

In Italy, the government can review any transaction changing the ownership, control or availability of strategic assets in the energy, health, finance sectors, among others.

However, Rome has limited room to intervene in UniCredit’s acquisition of BPM, as EU treaties favor the free movement of capital in the EU.

(Giuseppe Fonte and Valentina Za, Elena Smirnova, edited by Sophie Louet)

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