UniCredit SpA is planning to meet with French rival Credit Agricole SA in the next few weeks to discuss the Italian bank’s takeover bid for a domestic rival. UniCredit Chief Executive Officer Andrea Orcel is in touch with his French counterpart Philippe Brassac to try and set a meeting before the year ends,

UniCredit's bid for BPM also throws a spanner in the works for Italy's government, which had advanced plans for a merger of BPM with rival Monte dei Paschi di Siena which it saw as strengthening its banking sector without harming competition.

Banco BPM SpA, Italy’s third-largest bank, has rejected a €10 billion ($10.5 billion) takeover bid from UniCredit SpA, which aimed to create the country’s largest banking entity. Banco announced Tuesday that UniCredit’s offer undervalued its financial strength and future growth potential,