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Trading suspended in Banco Popolare shares

Stock drops in banking group over plan to raise capital

27 January, 14:27
Trading suspended in Banco Popolare shares (ANSA) - Milan, January 27 - Market regulator Consob halted trading in shares Monday in Banco Popolare after its value fell by more than 14% over concerns with a bid by the bank to increase capital.

Shares dropped to 1.268 euros at 9:30 a.m. before the trading suspension was announced.

The Milan exchange authorities allow shares to fall only 10% in value before taking action.

The capital increase plan was announced Friday in Italy's fifth-largest bank by assets.

The bank's plan to increase capital by issuing 1.5 billion euros in new shares is slated to kick in on April 1, as the bank prepares for stress tests by the European Central Bank.

Other bank shares weakened as well over investor concerns that other financial institutions may need to take similar steps to increase capital.