The Finance Ministry, which still holds 4.9% of Monte Paschi, wants to maintain a neutral stance and avoid giving the impression it is taking sides in the bid, the newspaper reported Sunday, citing a ministry official it didn’t identify. 

Finance Minister Giancarlo Giorgetti said in June an accelerated bookbuilding procedure is the best way to sell the stake, and reiterated the government is a “neutral” party in the ongoing banking consolidation process.

Intesa Sanpaolo’s chances of getting its €30 billion takeover bid over the line were boosted after Banco BPM on Friday night dropped its efforts to pursue a merger of equals with Siena-based Paschi, saying conditions for a mutually agreed transaction failed to materialise. Intesa is due to hold a shareholder meeting to approve a capital increase for the Paschi deal on Sept 10.

Banco BPM’s withdrawal came hours after an intervention from Credit Agricole SA, its biggest shareholder. “Nothing can be done against us or without us,” Credit Agricole’s deputy chief executive officer Jerome Grivet said on a call Friday. One preferable scenario for Credit Agricole would be a merger between Banco BPM and Credit Agricole Italia, the French bank’s deputy general manager Clotilde L’Angevin also said on an earnings call on Friday.

As Monte Paschi’s chief executive officer Luigi Lovaglio weighs the next move, Italy is waiting for what Credit Agricole will do next. Giorgia Meloni’s government blocked last year a bid by UniCredit SpA for Banco BPM using its veto powers on transactions involving strategic assets.

Monte Paschi was first bailed out in 2009 and nationalised eight years later after mounting losses.

In July, Credit Agricole increased its position to around 29% of BPM to defend its interests in Italy, but it hasn’t asked for authorisation to take a controlling stake, L’Angevin said in an interview on Bloomberg Television. 

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