Italy's BPER Banca Makes Non-Binding Bid for Troubled Rival

   By Cristina Roca 
 

BPER Banca SpA has submitted a non-binding offer for smaller rival Banca Carige SpA, it said late Tuesday.

The Modena, Italy-based bank envisages buying 88.3% of Carige's shares for a consideration of 1 euro ($1.13) from the country's deposit-guarantee fund, FITD, and Cassa Centrale Banca. It would then launch a public purchase offer of EUR0.80 a share for the remaining shares.

The EUR0.80 price represents a premium of 29% over Carige's closing price as of Dec. 13, BPER said.

Italy has been trying to reprivatize Carige. The FITD rescued the troubled lender in 2019 and holds 80% of its shares. Cassa Centrale Banca holds another 8.3%.

"The transaction would additionally make it possible to definitively resolve Carige's issues," BPER said.

BPER will seek a deal that doesn't affect its capital position and significantly boosts its earnings per share from as early as 2023, it said.

In its offer, the bank proposed that FITD makes a capital contribution of EUR1 billion to Carige before closing of the deal.

The offer will lapse if FITD doesn't grant BPER an exclusivity period by Dec. 20, or if the parties don't enter a binding memorandum of understanding by Dec. 31.

Write to Cristina Roca at [e-mail]

(END) Dow Jones Newswires

December 15, 2021 03:04 ET (08:04 GMT)

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