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Shares in UniCredit Hit by Report of Friction with ECB

MILAN, Nov 7 (Reuters) - Shares in UniCredit fell on Monday after a report of tensions between Italy's only bank that regulators deem of global systemic relevance and European Central Bank supervisors.

Shares in UniCredit fell 3.3% by 0835 GMT against a flattish sector, with a Milan-based trader saying the report by the Financial Times had triggered profit taking on the stock.

Citing people familiar with the matter, the FT said UniCredit had clashed with the ECB over the bank's capital distribution plans and its failure to leave Russia.

The two sides have aired their opposing views in a series of letters, according to one person briefed on the matter, who said the relationship was "more than just a little bit strained", the FT reported.

A spokesperson for UniCredit referred to comments the bank had made to the FT saying the ECB had provided ongoing "challenge and guidance" during the strategic overhaul by Chief Executive Andrea Orcel and that the regulator's "public support" was indicative of its trust in the bank.

Reporting by Giancarlo Navach and Valentina Za Editing by Keith Weir

Source: Reuters

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