Credit Agricole hikes Banco BPM holding, targets 19.99% stake

PARIS (Reuters) - French bank Credit Agricole said it was raising its Banco BPM stake to 15.1% from 9.9% through derivatives, with a view to buying up to 19.99% of the UniCredit bid target.

"This transaction is consistent with Crédit Agricole's strategy as a long-term investor and partner of Banco BPM," the French bank said in a statement on Friday.

"It strengthens the solid industrial partnerships in consumer finance and in non-life, personal protection and creditor protection insurance, and highlights Crédit Agricole's appreciation of Banco BPM’s intrinsic qualities," it added.

"Crédit Agricole does not intend to launch a tender offer for Banco BPM shares," it added.

Last month, UniCredit unveiled a surprise 10 billion euro ($10.56 billion) unsolicited takeover offer for BPM, which the smaller Italian bank has since rejected.

($1 = 0.9471 euros)

(Reporting by Sudip Kar-Gupta; Editing by Elisa Martinuzzi and Alexander Smith)