November 17, 2017 / 9:31 AM / in a year

Shares in Italy's Creval fail to trade as Carige's troubles spark sell-off

MILAN (Reuters) - Shares in Italian bank Creval (PCVI.MI) did not open on Friday, and were indicated down 31 percent, after rival Carige (CRGI.MI) failed to secure backing from a banking consortium for a 560-million-euro (499.8 million pounds) new share issue, endangering its future.

Creval recently announced plans to launch a new share issue for up to 700 million euros, more than five times its current market value. It has signed a pre-underwriting contract with Milanese merchant bank Mediobanca.

Last-minute hurdles prevented Carige from finalising an underwriting accord with Credit Suisse, Deutsche Bank and Barclays on Wednesday night, sparking concerns of more bank failures.

“It’s clear that if the Carige deal falls apart Creval’s won’t work either, and this will require looking for solutions similar to those applied to the Veneto-based banks [which were liquidated by the government],” Anthilia Capital fund manager Giuseppe Sersale said.

Reporting by Valentina Za and Danilo Masoni, editing by Steve Scherer

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below