Investing.com -- Italian banking group Banco BPM has urged its potential acquirer, UniCredit, to withdraw its buyout offer.

The call for withdrawal comes after UniCredit informed authorities that it cannot fulfill the conditions imposed by the Italian government for the takeover. UniCredit’s CEO, Andrea Orcel, is currently leading the negotiations.

On Wednesday, UniCredit obtained a 30-day suspension of its tender offer for Banco BPM from the market regulator Consob. The suspension is intended to give UniCredit time to convince the government that the current conditions are unachievable.

Despite UniCredit’s efforts, a government source revealed on Wednesday that the government has no plans to change its demands.

Banco BPM has expressed concerns over UniCredit’s lack of transparency with investors regarding the challenges of meeting the government’s conditions.

The bank stated that UniCredit has not adequately informed its investors about the issues it has communicated to the authorities in Rome. These undisclosed difficulties pertain to the implementation of the conditions Italy has imposed in the interest of national security.

Banco BPM believes that this undisclosed predicament should cause the offer to be nullified.

UniCredit has raised objections to the conditions and has been actively engaging with government officials responsible for ensuring their implementation. The bank is attempting to demonstrate that compliance with the conditions is not feasible.

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