MILAN Feb 14 * Italian banks Banca Popolare
di Vicenza and Veneto Banca have submitted a draft merger plan
to the European Central Bank that includes a new capital
injection of between 4 billion and 5 billion euros ($4.3-5.3
billion), Il Messaggero reported without citing sources.
* The paper said the draft plan had been submitted also to
European Union's competition authorities to clear the way for a
an expected investment by the Italian state in the two ailing
* The plan prepared by Popolare di Vicenza CEO Fabrizio
Viola also envisages the creation of a bad bank where the two
bank's 9 billion euros of bad loans would be transferred, the
* Popolare di Vicenza and Veneto Banca did not immediately
reply to a request for comment.
* Italy could tap the 20 billion euro bank aid fund it
introduced in December which it used to bail out Monte dei
Paschi di Siena.
($1 = 0.9416 euros)
(Reporting by Valentina Za. Editing by Jane Merriman)