Italy Unwilling to Ease BPM Limits in Risk to UniCredit Deal (1)

Italy’s government is unwilling to soften conditions imposed on UniCredit SpA’s bid for Banco BPM SpA, potentially prompting the firm to pull the deal, according to people familiar with the matter.

Rome doesn’t currently see any reason to make it easier for UniCredit to buy the smaller rival and it’s unlikely to change the restrictions it set out last month on the proposed transaction, several people said.

That could be a deal breaker for UniCredit, which is of the view that compliance with the restrictions would create legal risks, other people said. The lender is likely to ...