By Giuseppe Fonte and Angelo Amante
ROME (Reuters) -Italian Economy Minister Giancarlo Giorgetti said on Wednesday he would resign if he were overruled on “golden power” conditions the government has tied to UniCredit’s bid for smaller bank Banco BPM.
Giorgetti, from the hard-right League party, was speaking after reports in Italian newspapers, citing government sources, suggested that changes in the conditions were possible, but were being resisted by the minister.
He told reporters in the Senate that without the full support of Prime Minister Giorgia Meloni on the issue he would quit immediately.
“If there were the slightest misalignment (with Meloni) you wouldn’t find a resignation threat, but the resignation itself. You don’t announce your resignation, you do it,” Giorgetti said.
UniCredit’s swoop on BPM, which derailed Rome’s plans to combine BPM with state-backed Monte dei Paschi di Siena, is part of a wave of proposed takeover bids rocking Italian banking.
In order to clear the deal, Meloni’s administration has given UniCredit nine months to cease its activities in Russia and asked it not to reduce BPM’s loan-to-deposit ratio for five years.
The co-ruling Forza Italia party, led by Foreign Minister Antonio Tajani, is pushing Meloni to ease these terms.
Tajani replied “yes, absolutely,” when asked by Reuters in parliament whether he was in favour of making the conditions on UniCredit less stringent.
The party is being lobbied by Italian companies that are still relying on UniCredit to pursue their business activities in Russia, even though these have been much-reduced since Moscow’s invasion of Ukraine in 2022.
Tajani said he was defending some 270 Italian firms still working legitimately in Russia, and showed no willingness to compromise.
“I am not going to take a step back for anybody,” he said, adding that he wanted Cabinet to convene to reconsider the golden power conditions on the UniCredit bid.
STAND-OFF
Giorgetti is determined to maintain a hard-line on UniCredit after the government said it was protecting Rome’s strategic interests by avoiding “even the slightest risk” of aiding Russia’s economy where the bank operates.
Meloni has not recently spoken publicly on the issue.
Giorgetti said the government was focused on monitoring compliance with the golden power conditions, and its response to issues raised by both Banco BPM and UniCredit would be fully coordinated between the Treasury and Meloni’s office.
UniCredit has appealed to an administrative court against the terms set by the government, and its CEO Andrea Orcel said on Tuesday it could let the offer lapse because it was no longer financially advantageous under the conditions imposed.
Banco BPM also said it would appeal to an administrative court against a decision by Italian market regulator Consob to suspend the buyout offer for 30 days, to give UniCredit time to negotiate the golden power terms with the government.
“They all go to court in this country and things get messy,” Giorgetti said.
(writing by Alvise Armellini, editing by Gavin Jones)
