MILAN (Reuters) – Italian banks plan are set to take a 43 percent stake in troubled peer Carige under a 720 million euro (615.5 million pounds)rescue plan sponsored by U.S. asset manager BlackRock, the head of a banking fund said.
Speaking to reporters on Monday after a meeting of the voluntary-contribution arm of Italy’s FITD depositor protection fund, FITD Chairman Salvatore Maccarone said the plan was expected to receive a final approval at a May 14 general meeting. The plan would then be presented to the European Central Bank on May 17.
Maccarone said the rescue plan would see Italian banks convert into equity 313 million euros in hybrid debt they bought from Carige to prop up the lender in November 2018.
BlackRock would cover the rest of the cash call with a part of it reserved for Carige’s current shareholders. State-owned soured loan vehicle SGA would take on the bank’s bad loans under the plan.
(Reporting by Andrea Mandala, writing by Valentina Za)