Crédit Agricole S.A. (ENXTPA:ACA) has told Italy's Treasury it has no plans to take control of Banco BPM S.p.A. (BIT:BAMI), two sources close to the matter told Reuters, after the French lender's purchase of a 9.2% stake last week raised the prospect of a full bid. Given the French group's presence in Italy, its biggest foreign market, the investment in Banco BPM - which made Credit Agricole the leading investor in the country's No.3 bank - stoked speculation that a full takeover could follow. One of the sources said Rome had raised no objections to Credit Agricole's stake building, but any attempt to win control of Banco BPM would cause serious concerns.

The source added that Credit Agricole had reassured Rome it had no bid plans. “The French have confirmed that they do not want control of Banco BPM,” the source said. Credit Agricole and Banco BPM both declined to comment.

Under so-called golden power rules, the government has the right to block unwanted bids in industries deemed of strategic importance, such as banking, energy and telecoms. In unveiling the stake in Banco BPM, Credit Agricole said it had not sought regulatory approval to cross the 10% threshold. The sources said Credit Agricole's move had irked Italy's leading financial institutions, with one source adding the Treasury had been urged to take a stance over a potential takeover. Banco BPM had been an acquisition target for bigger domestic rival UniCredit, which was ready to launch a bid before being hit by the Ukraine war due its large exposure to Russia.