By Elvira Pollina and Valentina Za

MILAN (Reuters) -Some UniCredit board members are seeking clarity from CEO Andrea Orcel on his M&A plans and have asked him to explain the way forward, two sources said, after a spat with Rome delivered another setback to his ambition to grow.

Months into a multi-strand acquisitions strategy, some board members are pressing Orcel for the guidance as a bid for smaller rival Banco BPM hangs in the balance, the sources with knowledge of the matter said, speaking on condition of anonymity ahead of a Sunday board meeting at Italy's second-largest bank.

Orcel, who built his reputation as a dealmaker over a three-decade career in investment banking, retains the confidence of investors who have seen UniCredit shares rise six-fold since he joined in 2021. But he finds himself in a tricky spot as his two big M&A plays for Germany's Commerzbank and BPM make little headway.

UniCredit declined to comment.

The bank's board gets regular updates from the CEO on his merger and acquisition strategy, a third person close to the matter separately said.

Orcel has placed UniCredit at the heart of the consolidation wave sweeping Italian finance with a 14 billion euro ($16 billion) all-share offer for BPM and after buying 6.7% of insurer Generali, which UniCredit has said is a financial investment, like a 28% stake in Commerzbank.

The BPM bid angered Rome, which had alternative plans for the lender and last month imposed conditions UniCredit must meet to proceed. UniCredit has said those prescriptions could be harmful and force it to shelve the bid.

The stalemate with the government has created an unusual level of uncertainty around a bid process far advanced. UniCredit last week launched its exchange proposal for BPM, meaning BPM investors can tender their shares before an offer period ends on June 23.

The unease among some board members signals possible divisions just as Orcel enters a crucial phase of his high-stakes strategy.

Orcel also clashed with Germany's government when he acquired the Commerzbank stake and called for a full merger, before saying he was pausing the process until at least 2026.

The Commerzbank stake is worth 8 billion euros at current market prices, the Generali one 3.6 billion euros.

UniCredit reports first-quarter earnings on Monday.

($1 = 0.8882 euros)

(Reporting by Elvira Pollina and Valentina Za; Editing by Tommy Reggiori Wilkes and Elaine Hardcastle)