MILAN, Nov 25 (Reuters) - Italy's UniCredit on

Monday launched a surprise all-share offer worth 10 billion

euros ($11 billion) for smaller domestic rival Banco BPM

, while it also pursuing a potential deal with

Germany's Commerzbank.

Led by veteran dealmaker Andrea Orcel since 2021,

UniCredit had readied in the past a buyout offer for Banco BPM,

before turning his focus on Germany where his advances have

sparked a backlash.

UniCredit said on Monday the buyout offer for Banco BPM was

independent of its proposed investment in Commerzbank.

The offer comes after Banco BPM this month bought 5% in

bailed-out mid-sized rival Monte dei Paschi (MPS), a

move seen as potentially paving the way for an eventual

combination as the state pulls out of MPS entirely.

It also follows a 1.6 billion euros ($1.7 billion) buyout

offer Banco BPM launched this month to gain full control of

asset manager Anima Holding, as it seeks to boost net

fees in the faces of falling interest rates.

UniCredit said it had taken note of the Anima's bid. Orcel

has worked to boost fee income at UniCredit and make its profit

less reliant on income from lending.

UniCredit offered 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.

"Europe needs stronger, bigger banks to help it develop its

economy and help it compete against the other major economic

blocs," Orcel said in a statement.

UniCredit said the BPM deal was expected to add to its

earnings per share in the high single digit range within two

years after the completion of the offer.

BPM, which has roots in Milan's wealthy Lombardy region, did

not immediately respond to a Reuters request for comment.

BPM's shares have risen about 5.3% since the close on Nov.

6, before it announced its offer for Anima.

($1 = 0.9542 euros)