Banca Carige denies possible merger with BMPS (translated)
29 SEP 2018
Banca Carige [BIT:CRG], the Italian lender, has denied market rumours that it is considering a merger with counterpart Banca Monte dei Paschi [BMPS], Italian language daily Il Sole 24 Ore reported. The report cited a Carige spokesperson who said that there was no basis to the chatter.
The report also cited financial sources who said that Carige was not considering any M&A at present because it had not drawn up a new industrial plan. The sources also said that a merger would not solve the problems facing the two banks.
In regard to BMPS, the lender is likely to pursue a merger in 2019 with the aim of becoming a national player, the report said. Any such merger would take place via a capital increase to ensure that the lender keeps it capital ratios in sound health, the report noted.
Investors involved in the operation are likely to want a state-owned subject such as Cassa Depositi e Prestiti (CdP) to hold a 49% stake in BMPS. The report noted that CdP would take the place of the Ministry of Economy and Finance,CdP's ultimate owner.
The report noted that the Ministry presently holds 65% of BMPS.
BMPS has a market cap of EUR 2.57bn and Carige's market cap is EUR 362m.