Italian bank sell off back on the table
(23 August 2016 – Italy) Sources have indicated that a tender to sell the good asIsets of four Italian banks rescued from bankruptcy in November 2015 has been reopened following the rejection of three binding bids submitted in July.
Reports say that the three bids were rejected due to the number of conditions placed on the offers, with suitors who had presented non-binding offers have now been invited to bid again.
Unconfirmed reports from Italian publications have said that the idea of selling the four banks together was being dropped in favour of disposing each lender separately.
Making use of a deposit guarantee fund, Italian banks have injected €3.5 billion euros (A$5.2 billion) into Banca Marche, Banca Etruria, CariChieti and CariFerrara to cover previous losses and provide them with €1.8 billion in additional capital.
The value of the four lenders has already been written down to €1.4 billion due to restructuring charges. However, bids submitted thus far have been rumoured to be a fraction of that figure, implying a heavy loss for the country’s problematic banking system.
Following the July deadline for binding offers, the Bank of Italy announced that it had received three bids. US investment funds Apollo Global Management and Lone Star were among the bidders.
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