Banco BPM board meeting Tuesday at 0830 GMT
Italy39;s Treasury had hoped for BPM tieup with MPS
UniCredit made allshare offer at 0.5 premium

MILAN, Nov 26 Reuters Banco BPM gathers its board on Tuesday for an initial discussion on the 10 billion euro 10.5 billion unsolicited takeover offer that rival UniCredit has launched for Italy39;s thirdlargest bank.

Monday39;s move upset Italy39;s Treasury which had been hoping BPM would merge with bailedout Monte dei Paschi di Siena MPS, and which had just sold 15 of MPS at a premium, including 5 to BPM, to encourage that.

UniCredit CEO Andrea Orcel said his bank could not afford to be sidelined as consolidation in Italy sped up.

Shares in Banco BPM closed up 5.5 on Monday at 7 euros, above the 6.657 euros a share offered by UniCredit in its allshare offer a sign the market sees the bid39;s 0.5 premium as too low. They rose 1 in early trade on Tuesday.

The board meets at 0830 GMT. Italian news agency ANSA quoted a Banco BPM board member on Tuesday as saying UniCredit39;s bid was hostile.

Orcel acknowledged in an investor call on Monday that the bid39;s price was close to the market price, noting that a cash component can be added later on.

The bid is nonbinding and has to be confirmed within 20 days, by which deadline UniCredit must file the offer document with Italy39;s market regulator.

Shares in UniCredit, driven higher with generous payouts during Orcel39;s first threeandahalf years at the bank, fell 1.2 on Tuesday…