MILAN (Reuters) - Italian mid-tier lender Credito Valtellinese (PCVI.MI) said on Wednesday it was considering a possible tie-up with troubled peer Banca Tercas but that it had not taken any decision about a possible recapitalisation linked to the deal.
In a statement Credito Valtellinese said it had recently started a due diligence on Tercas, which is currently under special administration, to evaluate the possibility of a merger among other things.
Credito Valtellinese, which holds 7.8 percent of Tercas, said it expected to complete the due diligence by the end of September and hold a board meeting to discuss the issue on October 8. Italian newspaper MF said on Wednesday Credito Valtellinese could inject 200 million euros in Tercas, and would need a capital increase to be able to do that.
Writing by by Danilo Masoni, ediitng by Silvia Aloisi