UniCredit's $10.5 billion takeover offer does not reflect Banco BPM's profitability, says the latter.

• On Tuesday, Banco BPM stated that UniCredit's unexpected takeover offer does not reflect its profitability and could limit its legal independence.
• On Monday, Banco BPM was acquired by UniCredit for approximately $10.5 billion.

On Tuesday, the Italian lender stated that the unexpected takeover offer from a domestic rival does not reflect its profitability.

UniCredit presented a $10.52 billion bid on Monday, which was not previously agreed upon and came with "unusual" terms, according to the Banco BPM board of directors.

The board flagged that the brisk timeline of a potential merger, expected "in the shortest time possible," would harm Banco BPM's profitability and potential for further value creation.

Banco BPM has submitted a bid to acquire Commerzbank, two months after Unicredit, Italy's second-largest bank, expressed interest in a possible takeover of the German lender. However, this move has been met with fierce opposition from the German government.

Banco BPM's board believes that Unicredit's offer may result in a significant dilution of its current geographical exposure in Germany, rather than providing an attractive concentration in the most dynamic regions of the country and the Eurozone.

On Monday, UniCredit CEO Andrea Orcel stated that a Banco BPM transaction would be given priority over any potential collaboration with Commerzbank, as reported by Reuters.

CNBC has reached out to UniCredit for comment.

At 12:37 p.m. London time on Tuesday, UniCredit's Milan-listed shares were unchanged, while Banco BPM's stock fell by 0.20%.

'Historical target'

On Monday, UniCredit announced an all-stock deal to acquire Banco BPM for a slight premium on Friday's close price, with Orcel describing Banco BPM as a "historical target."

UniCredit is well positioned to help Europe develop its economy and compete against other major economic blocs due to the work done over the past three years, according to Orcel.

Despite his efforts, UniCredit's consolidation proposals have not yet been approved by the European Central Bank, and its domestic plan has received a lukewarm response from the Italian government.

According to Italian newswire ANSA, Economy Minister Giancarlo Giorgetti stated Monday that the safest way to lose a war is by engaging on two fronts, although this rule may not hold true for UniCredit's Banco BPM and Commerzbank ambitions.

Earlier this month, Banco BPM acquired a 5% stake in Monte dei Paschi, the world's oldest lender, as the government aimed to reduce its ownership in the bailed-out bank. At the time, Banco BPM stated that it had no plans to submit a request to acquire more than 10% of Monte dei Paschi.