(Bloomberg) -- Credit Agricole SA has raised its stake in Banco BPM SpA to 15.1%, as the Italian lender faces a takeover bid from UniCredit SpA.

The French bank bought financial instruments that would secure a 5.2% stake, and could physically settle those trades once approval is granted, it said Friday in a statement. Credit Agricole, which already owned a 9.9% stake, said it doesn’t intend to launch a tender offer for Banco BPM shares. 

The move comes after UniCredit launched a surprise bid for Banco BPM last month, just weeks after the smaller rival embarked on a takeover attempt of its own. Banco BPM offered to buy asset manager Anima Holding SpA and it took a large stake in Banca Monte dei Paschi di Siena SpA from the government.

Credit Agricole has a complicated network of relationships with both Banco BPM and UniCredit. The Paris—based company is Banco BPM’s largest investor and it is a major partner for it in consumer credit and non-life insurance joint-ventures. 

UniCredit Chief Executive Officer Andrea Orcel and his Credit Agricole counterpart, Philippe Brassac, have been trying to schedule a meeting in the next few weeks to discuss the Italian bank’s takeover bid, Bloomberg has reported. They are expected to touch on a potential extension of the sales arrangement for Credit Agricole’s asset management arm Amundi SA when and if they meet.

“Credit Agricole is going to apply for the supervisory authority’s authorization to increase its stake in Banco BPM’s share capital above 10% and up to 19.99%,” it said in the statement on Friday.

“This transaction is consistent with Credit Agricole’s strategy as a long-term investor and partner of Banco BPM,” it said.

(Updates with context throughout.)

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