Italy turns down Unipol's BNL bid

Spanish bank BBVA may now return with a fresh bid for BNL

The Italian central bank has vetoed domestic insurer Unipol's 5bn euro (£3.4bn) takeover bid for lender Banca Nazionale del Lavoro (BNL).

Although the Bank of Italy gave no reason for its decision, it marks the latest twist in an Italian banking sector hit by scandal.

The former head of the central bank, Antonio Fazio, stood down in December in connection to another takeover saga.

Mr Fazio, who protests his innocence, was accused of bias and aiding a firm.

Spanish interest

He is alleged to have tried to help Banco Popolare Italiana (BPI) buy fellow Italian lender Banca Antonveneta at the expense of Dutch bank ABN Amro, so as not to see an Italian bank fall into foreign hands.

BPI's bid then collapsed when the scandal first broke last summer, leading to ABN Amro's successful takeover of Banca Antonveneta.

Although there are no allegations that the Bank of Italy was biased regarding BNL, in that case there was also a foreign bidder, Spanish bank BBVA.

The rejection of Unipol's approach for BNL could mean BBVA returning with a fresh bid, although the Spanish bank has made no comment.

Unipol said the central bank had thrown out its bid because it doubted both the insurer's financial strength and that of the planned new entity.