Banco Popolare Societa Cooperativa Scarl (BIT:BP) is set to appoint Mediobanca and BofA-Merrill Lynch as advisers for a possible merger with another domestic cooperative bank, three sources close to the matter said. Two of the sources said the "most intense" contacts Banco Popolare, based in the rich northern region of Veneto, was holding about a possible combination were with Lombardy rival UBI. UBI, which according to sources is working with Credit Suisse but has not given a formal mandate to any advisers, declined to comment.

The sources said a second option for Banco Popolare was a merger with Banca Popolare di Milano Scarl (BIT:PMI) while a tie-up with the other two Veneto banks - Veneto Banca and Popolare di Vicenza - remained a more remote possibility. On July 14, 2015, Banca Popolare dell'Emilia Romagna picked Goldman Sachs as its own adviser on merger options.