Banco Popolare is to increase its
capital by one billion euros in view of a planned merger with
Banca Popolare di Milano (BPM), the Verona-based credit
institute said in a statement on Tuesday.
The capital increase will be approved by shareholders on
May 7.
The board of directors will then have 18 months to launch
the operation, the statement said.
Banco Popolare and BPM are poised to form Italy's third
biggest bank after Intesa and UniCredit.
The merger still needs the formal approval of the European
central Bank (ECB), although its banking oversight committee
reportedly issued "an informal green light" at the end of last
month.
Banco Popolare's stock was down 6% in early trading on
Tuesday, taking it to a minimum low of 5.01 euros, after a
suspension for excessive volatility.
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