PARMA (Italy) – Banco BPM, Italy’s third largest bank, said Saturday that it is focused on growing opportunities as a standalone lender. This statement came after renewed speculation about UniCredit being a potential takeover target. Shares rose 10% on Saturday.

Banco BPM’s origins in Lombardy are ideal for UniCredit. This bank is Italy’s second largest.

Giuseppe Castagna Chief Executive at Banco BPM stated that “we still have a very significant path to take over the stock exchange and we have a very valuable standalone growth path before us that is yet not fully exploited.” Castagna spoke alongside the ASSIOM forEX conference in Parma. Banco BPM’s value is greater.

Castagna answered a question about UniCredit potential interest, saying that the bank hadn’t received communication from its larger counterpart in this regard.

UniCredit, responding to speculations about a possible imminent bid for the company, stated Friday that it was continuing to review all strategic options and would notify the market when necessary.

Banco BPM shares reached their highest level in 4 years earlier this week after posting better-than-expected fourth quarter earnings. The lender reported higher-than-expected results as loan loss provisions were more than half and revenues were boosted by fees.

Castagna claimed that the lender was not looking for mergers at this time and instead was focusing on last year’s business plan.

Castagna stated that “We just came out of a restructuring, we have presented an ambitious plan…but we believe the market is only starting to understand what the path will take us further,” Castagna continued on Saturday.

Banco BPM’s shares have gained around 35% since the beginning of the year and more than 60% in the last 12 months, as it’s seen as a possible M&A target.

($1 = 0.8811 euros)