Italy Banking Foundations Ready to Remain CDP Shareholders

By Liam Moloney

Italy's banking foundations will remain shareholders of state-controlled lender Cassa Depositi e Prestiti SpA as long as the conversion of their privileged shares into common stock is "fair," their association said Wednesday.

"We are fully available to remain shareholders of CDP by converting our privileged shares into common ones at fair conditions," Giuseppe Guzzetti, chairman of ACRI, the association of the banking foundations, said in a statement. They "are aware of the strategic importance that CDP has for the development of the country."

However, if the associations consider the conditions are no longer fair, the foundations may withdraw from CDP, added Mr. Guzzetti.

CDP, which was founded in 1850, receives more than 80% of its funding from state-guaranteed savings products. In return, its role is to lend to Italian local authorities and small and medium-size enterprises, as well as fund long-term infrastructure projects.

Its role has significantly expanded and is also allowed to acquire equity holdings in companies "of major national interest." Already, CDP owns controlling stakes in Italian energy behemoths such as oil and natural gas company Eni SpA (E), electricity-grid operator Terna SpA (TRN.MI) and gas transmission and storage company Snam SpA (SRG.MI).

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