Italy’s Banco BPM and BPER Banca are considering a possible merger with a view to reaching a deal in the first half of 2021, three sources familiar with the matter said. Rooted in the wealthy Lombardy region, Banco BPM, Italy’s third-largest bank has been scouting for partners since Intesa Sanpaolo bought mid-sized UBI this year. Banco BPM has turned its attention to BPER after preliminary discussions with UniCredit led nowhere, while politics later derailed talks with Credit Agricole Italy, sources have said.