Orcel’s Next Battle Shapes Up as Banco BPM Rejects UniCredit Bid

Banco BPM SpA rebuffed an unsolicited approach by UniCredit SpA, saying its takeover proposal wasn’t agreed in advance, is too low and would likely hurt jobs and competition in Italy.

The deal terms “do not reflect in any way” Banco BPM’s profitability and its potential for value creation, it said in a statement on Tuesday. At the same time, it acknowledged that UniCredit’s move has triggered a rule that will make it harder for Banco BPM to pursue its own deals.

The response leaves UniCredit Chief Executive Officer Andrea Orcel facing another uphill battle to win over investors, while ...