Bid comes after UniCredit built large Commerzbank stake
Banco BPM has always been a target for UniCredit
Banco moving to bring inhouse asset manager Anima
Banco bought stake in rival MPS this month from Rome govt

MILAN, Nov 25 Reuters Italy39;s UniCredit on Monday launched a surprise 10 billion euro 11 billion allshare offer for smaller domestic peer Banco BPM  one that comes as it also pursues a contentious deal for Germany39;s Commerzbank .

The proposal, which offers 0.5 premium for Banco BPM shareholders, is not the first time UniCredit has set its sights on its rival with roots in Milan39;s wealthy Lombardy region, an area where UniCredit39;s presence is limited.

With this acquisition of one of our historical targets, we reinforce our position in Italy, UniCredit CEO Andrea Orcel, a veteran dealmaker who has led the bank since 2021, said in a statement.

Commerzbank shares fell as much as 7 at the start of trading in Frankfurt, while in Milan UniCredit shares fell about 1.5 and BPM shares rose nearly 5.

Italy39;s secondlargest bank had previously readied a buyout offer for Banco BPM in 2022 just before the Ukraine conflict broke out.

UniCredit offered 0.175 of its common stock for each BPM share, valuing them at 6.67 euros each. That represents a premium of about 0.5 to Friday39;s closing price or 15 to the day before the announcement of the Anima bid.

The offer for Banco BPM is independent of its proposed investment in Commerzbank, UniCredit said, noting…