January 26, 2018 / 6:19 PM / 6 months ago

Intrum's talks with Intesa include 51 pct stake, 10-12 bln euros of bad loans-sources

MILAN, Jan 26 (Reuters) - Scandinavian debt collector Intrum Justitia, engaged in talks with Italy’s Intesa SanPaolo, is eyeing a 51 percent stake in the bank’s soured loan unit and 10-12 billion euros in bad debts, two sources close to the matter said.

Exclusive talks between the pair over Intesa’s bad loan business, are set to run until March, the sources said on Friday.

Mediobanca is advising Intrum, the sources said, with Financial daily Il Sole 24 Ore reporting that Goldman Sachs was a second adviser.

All interested parties declined to comment.

Intesa has made a priority of cutting bad debts that totalled 54 billion euros at the end of September, in a move that sources say was dictated by the regulatory environment.

After betting on recovering loans internally and investing in a unit that was hailed as a model for other banks, Intesa said this month it was in talks with Intrum over a possible sale of the business.

Intesa’s debt collection arm has been valued at around 500 million euros, several sources have said.

By selling the unit Intesa will be able to cushion the loss it is set to incur on the bad loans’ disposal. (Reporting by Massimo Gaia, Gianluca Semeraro and Valentina Za, Editing by Elaine Hardcastle)

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