By Valentina Za and Andrea Mandala
MILAN (Reuters) -Shares in Italy's Banco BPM climbed on Friday after renewed speculation that larger Italian rival UniCredit could launch a takeover bid for the lender.
The bank's shares closed up 9.8% at 3.55 euros, having gained around 35% since the beginning of the year and over 60% in the last 12 months, as the company is seen as a possible M&A target.
Responding to media reports of a potential bid, a UniCredit spokesperson played down the prospect of any imminent deal but did not dismiss the idea entirely.
"... in line with the 2022-2024 Strategic Plan, UniCredit continues to evaluate all available strategic options and will not fail to keep the market informed of any concrete developments that may arise," the spokesperson said.
No special Unicredit (MI:CRDI) board meeting had been called, the spokesperson added, after a newspaper reported that a bid proposal could be made as early as this weekend.
With its roots in the wealthy Lombardy region Banco BPM, which has a market capitalisation of around 5 billion euros ($5.7 billion), is seen as the ideal geographical fit for UniCredit.
A source with knowledge of the matter had told Reuters UniCredit looked at Banco BPM last year and would have considered it at a cheaper valuation.
In presenting a new three-year strategy in December, UniCredit CEO Andrea Orcel set strict terms to consider M&A deals.
Banco BPM has not received any information about a possible bid from UniCredit, a source close to the bank said.
Daily newspaper Il Messaggero reported in its print edition on Friday that Unicredit has started looking at M&A opportunities, particularly at Banco BPM, after walking away from a rescue deal for state-owned rival Monte dei Paschi di Siena in October.
Later on its website, Il Messaggero, citing financial sources, backtracked and said that there was "no manoeuvring at the moment" as the conditions do not exist for a merger in line with Orcel's objectives.
($1 = 0.8777 euro)