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Italy: Banco Popolare says BPM deal closer

 |  March 23, 2016

Banco Popolare’s chief executive said on Saturday that the Italian bank and Banca Popolare di Milano are getting closer to meeting the European Central Bank’s merger conditions and a capital increase still cannot be ruled out.

Prime Minister Matteo Renzi and his economy minister have thrown their weight behind the deal, which could lead to further mergers between Italian banks following reforms aimed at strengthening a fragmented industry and improving profitability.

Buy months of talks between the two cooperative banks over a tie-up that would create Italy’s third biggest lender stalled after the ECB demanded stronger capital and leaner governance.

However, Banco Popolare CEO Pier Francesco Saviotti said a deal was within reach and that capital-boosting measures were being considered. He said this did not necessarily mean a capital increase, but he could not rule it out altogether.

Full content: Reuters

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