Shares of Banco Popolare and
Banco Popolare di Milano (BPM) rose sharply on Wednesday as talk
increased of a possible merger between the two Italian
cooperative banks.
Banco Popolare shares trading was suspended for excessive
volatility after jumping more than 6%, while BPM increased 4.9%
to 88 cents per share.
Rumours have grown in recent days that the Verona and
Milan-based institutions are already in advanced negotiations
for a so-called "merger of equals" that would create Italy's
third-largest lender, following Intesa and Unicredit, worth 172
billion euros and with 2,484 branches.
The merger would result in legal headquarters in Milan with
an administrative base in Verona, ANSA sources said.
Banco Popolare President Carlo Fratta Pasini would be at
the helm of the new merged institution, with BPM CEO Giuseppe
Castagna head of operations, while Banco Popolare CEO Pier
Francesco Saviotti set to preside over the executive committee.
UBI Banca is also rumoured to be a possible player in the
merger, and its stock rose 3.76% Wednesday.
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