UniCredit has reportedly appealed to Italy’s highest court, Consiglio di Stato (Council of State), over the government’s conditions on its failed bid to acquire Banco BPM. 

The appeal follows a previous legal challenge in a lower court, where UniCredit achieved only a partially favourable outcome. 

The Italian government demanded that UniCredit exit its operations in Russia, a point confirmed by the court ruling that the bank is now contesting. 

Led by Prime Minister Giorgia Meloni, the government has interpreted UniCredit’s legal action as a hostile act, Reuters reported. 

The bank initially challenged the government’s decision, citing the need for more legal clarity regarding the imposed conditions. 

UniCredit abandoned its €15bn all-share offer for Banco BPM in July this year, attributing the decision to government intervention. 

Yesterday was the last day for UniCredit to submit its appeal after earlier deadlines passed in recent weeks. 

Italian daily La Repubblica first reported that the bank was considering this legal step. 

This dispute comes as Italy’s government uses a special power to review and veto corporate deals in strategic sectors, which faces scrutiny from European regulators. 

The European Commission is expected to ask the Italian government later this month to overturn its decision on the Banco BPM bid and revise the legislation. 

In recent weeks, Italian officials have held discussions with UniCredit, urging the bank to refrain from legal action ahead of the anticipated EU intervention. 

Also, some of UniCredit’s board members are looking to use the legal appeal to seek compensation from the government in future, the publication said. 

Last month, UniCredit raised its stake in Greece’s Alpha Bank to approximately 29.5%, following approval from the European Central Bank.