UniCredit chief executive Andrea Orcel said on Tuesday the bank is prepared to let its €14bn takeover offer for its smaller domestic rival Banco BPM lapse, as regulatory hurdles and government-imposed conditions have rendered the deal financially unviable under current terms.

Speaking at the national assembly of Italy’s FABI banking union, Orcel said a legal challenge to Rome’s demands will not be resolved before the offer expires on July 23. “It is not financially advantageous on its current terms,” he added.

To continue reading, join our community and benefit fromIn-depth coverage across key marketsComments from financial leaders and policymakers worldwideRegional/country bank rankings and awardsActivate your free trial