Banco BPM jumps after media report EU ready to warn Italy on UniCredit bid

** Shares in Banco BPM BAMI rise as much as 3.4% after a Bloomberg News report says the European Union is ready to warn Italy for imposing harsh conditions on UniCredit's UCG takeover bid for the smaller peer

** A Milan-based trader points out that the market is betting on the operation going ahead through a bidding war

** Bloomberg cites people familiar with the matter to report: "EU regulators will soon issue formal findings to the Italian government saying it had no right to weigh in on UniCredit's planned acquisition of Banco BPM"

** UniCredit shares rise as much as 1.5%

** Including Tuesday's rise, Banco BPM's stock has gained 33.51% YTD, while UniCredit's shares up 50.1% YTD