UniCredit to Pull BPM Bid If Rome Doesn’t Clarify Conditions

UniCredit SpA will pull the takeover bid for Banco BPM SpA if the Italian government doesn’t clarify the conditions imposed on the deal, Chief Executive Officer Andrea Orcel said.

“If it is not exactly clear what they mean, once we close the transaction, we will have the risk of a €20 billion penalty,” Orcel said at a conference organized by Goldman Sachs Group Inc. “The probability that we take that risk is zero, and therefore if the golden power is not in some shape or form clarified, we will pull.”