UniCredit raises profit outlook after dropping Banco BPM bid

UniCredit on Wednesday reported a higher than expected quarterly profit and raised its 2025 outlook, a day after ditching a takeover bid for rival Banco BPM which had led Italy's second biggest bank to clash with the government.

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UniCredit late on Tuesday said it was withdrawing the offer, blaming government intervention in the process, which it said deprived Banco BPM shareholders, as well as Italy's economy, of a good opportunity.

"We've drawn a line on this transaction," CEO Andrea Orcel told CNBC television. "At some point you need to cut your losses, eliminate your drag and focus on what you control."

UniCredit's tussle with the Rome administration over Banco BPM highlights a wider European trend of governments getting involved in banking consolidation.