Credit Agricole has discussed potential tie-up with Banco BPM’s Italian unit with government officials. After seeking approval to own up to 29.9% of Banco BPM, the French bank reassured Rome it would provide necessary guarantees for the merger. Banco BPM considering merger options with Credit Agricole Italy or Monte dei Paschi di Siena. Italy has special powers to vet deals involving strategic assets, including banks. Economy Minister has no political objections to a deal but would apply legislation to protect key assets if it proceeds.

Read more at Yahoo Finance: Exclusive-Credit Agricole discussed terms of possible BPM deal with Italy govt