Banco BPM CEO says rumors on a possible tie-up with UBI are groundless

FILE PHOTO: Banca Popolare di Milano (BPM) CEO Giuseppe Castagna is seen during business plan meeting in Milan, Italy, May 16, 2016. REUTERS/Stefano Rellandini

MILANO (Reuters) - Rumors about a possible tie-up between Italy's Banco BPM BAMI.MI and UBI Banca UBI.MI are groundless, Banco BPM Chief Executive Giuseppe Castagna said on Friday.

“The rumors were an abstract idea, a (theoretical) exercise by some investment banks”, Castagna told newspaper Il Messaggero adding that “the consolidation of the Italian banking system is a path that sooner or later will have to be undertaken”.

Banco BPM is due to announce its new business plan in the first quarter of 2020.

Reporting by Gianluca Semeraro; editing by Giulia Segreti