The Italian government has little room to intervene in UniCredit's Ops on Banco Bpm through the use of the Golden Power evoked by some in the executive branch to thwart the deal.

Sources close to the matter say this, explaining that Rome could use its special powers to safeguard the country's strategic assets only by dictating some "mild prescriptions" to the deal, while a veto would be difficult to sustain.

The 10.1 billion exchange offer announced by UniCredit last Nov. 25 for the Piazza Meda institution caused irritation from the government, which was aiming to create the third pole by consolidating Mps with Banco Bpm, a project that the move by the Andrea Orcel-led institution puts at serious risk.

There was no comment from the Treasury at this time. No comment from UniCredit.

(Italian version Andrea Mandalà, editing Sabina Suzzi)