Banca Carige may be targeted by Credit Agricole
Banca Carige, the listed Italian bank, could be acquired by French financial services group Credit Agricole, Italian language daily Milano Finanza reported. The report cited unspecified rumours claiming that Investindustrial, the Italian private equity firm, could also make an investment.
The report noted that Carige shares rose sharply on the rumours following a slump after Carige was found to be inadequately capitalised by tests carried out by the European Central Bank (ECB).
The report noted that Carige will have to present a capital strengthening plan to the ECB by 9 November.
The report added that the entry of a new shareholder in Carige could be facilitated by banking foundation Fondazione Carige selling a 7% stake in the lender. Fondazione Carige presently holds 19% of Carige. The report said that the new shareholder would have to be willing to take part in a capital increase being drawn up by Banca Carige.
The report added that the Fondazione Carige stake could be placed on the market via an accelerated bookbuilding programme.
Banca Carige has a market cap of EUR 704m.
Source Milano Finanza daily edition