A deal has been negotiated to
merge Banco Popolare di Milano (BPM) and Verona-based Banco
Popolare banks, ANSA learned Wednesday.
Executives from both lenders have gone to the Bank of Italy
and to the European Central Bank for approval.
The boards of both banks will meet to vote on the deal at
the weekend, pending approval by both central banks.
Under terms of the merger, BPM would be 100% controlled by
a new holding company for about three years.
The deal would create Italy's third-largest lender after
Intesa and UniCredit, worth 172 billion euros and with 2,484
branches.
On Tuesday, Banco Popolare reported it closed out the 2015
financial year with net profits of 430 million euros and
proposed dividends of 15 eurocents a share.
The lender also reported it cut its non-performing loans by
200 million euros in the past year, to 14.1 billion euros.
Banco Popolare shares on Wednesday added 11% to close at 7
euros a share, while BPM rose 9.45% to close at 0.60 euros a
share.
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