July 11, 2018 / 12:31 PM / in 3 months

Banco BPM to sell 800 million euros loan portfolio in debt collection unit sale - sources

MILAN (Reuters) - Italy’s Banco BPM (BAMI.MI) will sell a portfolio of loans linked to leasing contracts worth 800 million euros in addition to its debt collection business and its remaining bad loans, several sources close to the deal said on Wednesday.

FILE PHOTO: A woman walks past Banca Popolare di Milano ( BPM) downtown Milan, Italy, February 11, 2016. REUTERS/Stefano Rellandini/File Photo

Created last year from the merger of Banco Popolare and Banca Popolare di Milano, the bank is ready to put on the block up to 9.3 billion euros (8.22 billion pounds)in bad debts and the entire debt collection business.

Six bids are expected by 1700 CET when a deadline for submitting binding offers expires.

The offers will be made by Pimco and Phoenix Investment Partners, private equity firm TPG Capital together with Davidson Kempner Capital Management and Prelios, Vaerde Partner and Guber, Italian bad loan specialist Credito Fondiario and Elliott Management Corporation, Cerberus Capital Management and a consortium including doBank (DOB.MI) and Fortress investment group.

An investment vehicle led by former banker and minister Corrado Passera will team up with doBank (DOB.MI) and Fortress Investment Group, a separate source told Reuters on Wednesday.

Banco BPM declined to comment.

($1 = 0.8530 euros)

Reporting by Massimo Gaia; writing by Giulia Segreti; editing by Francesca Landini

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