Italian opposition blames Meloni missteps for Credit Agricole move on Banco BPM

By Giuseppe Fonte and Angelo Amante

ROME, Nov 9 (Reuters) - Italy's opposition parties stepped up criticism of Prime Minister Giorgia Meloni's banking policy on Monday, saying government intervention in M&A deals had helped pave the way for France's Credit Agricole to take control of Banco BPM.

The French lender CAGR.PA said on Monday it had proposed merging its Italian subsidiary with Banco BPM BAMI.MI, in a move that would strengthen its position in its largest foreign market.

Meloni and Economy Minister Giancarlo Giorgetti tried for years in vain to build a third domestic banking group around BPM and state-backed Monte dei Paschi di Siena BMPS.MI, capable of challenging market leaders Intesa Sanpaolo ISP.MI and UniCredit CRDI.MI.

"The sorcerer's apprentices wanted to defend the Italian ownership of the banks. Now BPM, one of the country's leading banks, is at risk of ending up under the control of a French group. Congratulations," said Antonio Misiani, from the main centre-left opposition Democratic Party (PD).

Under its golden power rules aimed at shielding strategic assets, Rome last year imposed tough terms to clear UniCredit's abortive plan to take over BPM. UniCredit later blamed the administration for its decision to abandon the deal.

'MELONI AND GIORGETTI MUST EXPLAIN TO PARLIAMENT'

MPS appears out of the running, with Intesa set to launch a €34-billion ($38 billion) takeover offer for the Tuscan lender on November 24, once it has secured some key regulatory approvals.

"Meloni and Giorgetti must explain to parliament their plan to safeguard lending to households and businesses and competition within the banking system. Assuming, that is, that they actually have a plan," Misiani added.

The proposed deal would give Credit Agricole CAGR.PA, which already owns 29.6% of Banco BPM BAMI.MI, a roughly 45% stake in the combined group.

Representatives from Meloni's office and the economy ministry declined to comment.

Deputy Prime Minister Matteo Salvini, among the main sponsors of a MPS-BPM tie-up in recent years, declined to comment on the French move. "I'll leave that to the economists," he told reporters in Milan.

Responding to Salvini, the leader of the centrist opposition Azione party, Carlo Calenda, accused the government of hypocrisy.

"First, they use golden powers to block the takeover of BPM by an Italian bank, and then they stand by, silent and content, whilst a deal goes ahead that will make it French," he wrote on social media platform X.

Early analyst reports identified golden powers as the key execution risk, with Italian boutique investment bank Equita saying the role of BPM-controlled fund manager Anima Holding ANIM.MI will need to be assessed.

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