Shares in Italy's Carige jump as bidders line up (updated)
07/01/2022 11:19
* Owner to select preferred bidder on Monday
* Italy's BPER vying with local arm of Credit Agricole
* U.S. fund Cerberus also in the race - papers
* Shares up 11%
(Adds comments, details)
By Valentina Za and Maria Pia Quaglia
MILAN, Jan 7 (Reuters) - Shares in Carige CRGI.MI rose 11%
on Friday as the owner of the troubled Italian bank prepares to
select a suitor for exclusive negotiations while a third
potential buyer emerged.
A deal would allow Italy to solve a longstanding banking
headache. The government has lined up some 400 million euros
($453 million) in tax incentives to ease Carige's sale.
Italy's FITD depositor protection fund, which owns 80% of
Carige following a 2019 industry-financed bailout, said after
markets closed on Thursday its steering committee would conclude
on Monday its review of non-binding offers for Carige.
Italy's BPER Banca EMII.MI , which before Christmas
unveiled a rescue proposal for Carige, is vying with the Italian
arm of France's Credit Agricole CAGR.PA , a person familiar
with the matter said. Credit Agricole declined to comment.
Dailies Il Messaggero and Il Sole 24 Ore on Friday reported
that U.S. fund Cerberus was also in the running. It was not
immediately possible to reach Cerberus for comment.
BPER offered a token one euro for Carige and asked the FITD
to inject 1 billion euros into the loss-making peer.
That sum exceeded the 700 million euros the FITD was allowed
to spend based on the previous year's contributions by members.
The person said Credit Agricole Italia's capital injection
request was significantly lower than BPER's, which however
remains the favoured bidder.
BPER, which has been set onto an expansion path by its
leading shareholder insurer UnipolSAI US.MI , said on Dec. 21
it was ready to engage in discussions with FITD and is expected
to amend its request. urn:newsml:reuters.com:*:nL8N2T64XP
The fund said on Thursday the non-binding offers for Carige
were subject to a due diligence analysis to be conducted during
an exclusive negotiation period. It has declined to name any
interested parties.
Based in the northwestern Liguria region Carige has been
laid low by an excessive exposure to the fragile local economy
and decades of mismanagement.
In crisis mode since 2014, when it launched the first of a
string of cash calls, Carige three years ago was placed under
special administration by the European Central Bank.
The depositor fund in 2019 spent 600 million euros to rescue
Carige which now needs another 400 million euros in capital.
It has been hunting for a buyer since Cassa Centrale Banca,
which had taken an 8.3% stake as part of the 2019 rescue, last
year walked away from a proposed acquisition.
News of Credit Agricole Italia's interest sent Carige shares
up 4.6% on Thursday.
A Carige deal would further boost Credit Agricole's presence
in Italy, its biggest foreign market where it ranks as the
sixth-largest lender following last year's 1 billion euro ($1.1
bln) takeover of small northern bank Creval.
Back in 2017 Credit Agricole Italia clinched a rescue deal
with FITD, taking over three small failing banks.
($1 = 0.8839 euros)
(Reporting by Valentina Za and Maria Pia Quaglia;Editing by
Elaine Hardcastle)
((valentina.za@tr.com))