Italy's UniCredit down after surprise $11 bln bid for Banco BPM
** Shares in UniCredit CRDI.MI fall 3% after Italy's second biggest lender made a surprise all-share offer worth around 10 billion euros ($11 billion) for smaller domestic rival Banco BPM BAMI.MI
** UniCredit offers 0.175 of its common stock for each BPM share, valuing them at 6.67 euros each for a premium of about 0.5% to the stock's closing price on Friday
** Banco BPM, which has roots in Milan's wealthy Lombardy region and is Italy's third largest bank, rises 5.1% to 6.96 euros at 0823 GMT, after a delayed start to trading
** "The offer can create many synergies but seems to be at a minimum price and still has room for growth. The market is indicating that it expects an improved offer," a Milan-based trader says
** UniCredit says the offer for Banco BPM would expand its pan-European presence and is independent of its investment in Commerzbank CBKG.DE
** "Return on investment in Banco BPM deal is expected to be well above 15%" - UniCredit CEO Andrea Orcel
** Up to Friday's close, shares in UniCredit were up 55% YTD, while Banco BPM's were up 39% over the same period
($1 = 0.9463 euros)
Reporting by Alberto Chiumento, Giancarlo Navach
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