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Italy's CDP seeks raising stake in Nexi-Sia after Nets deal - sources

FILE PHOTO: People stand outside the Italian payments group Nexi's headquarters in Milan, Italy, March 28, 2019. REUTERS/Alessandro Garofalo/File Photo

MILAN (Reuters) - Italian state lender CDP is in talks with banks to raise its stake in payments group Nexi-Sia to avoid dilution following a planned takeover of Nets announced on Monday, two sources close to the matter said.

Italy's biggest payments group Nexi NEXII.MI said on Monday it was in exclusive merger talks with Denmark's Nets over a potential $8 billion (6 billion pounds) tie-up which follows its multi-billion euro deal last month with Milan-based SIA.

If the Nets deal goes through, CDP Equity, SIA’s controlling shareholder, would see its stake dropping to 17% in the new entity from 25% in the Nexi-Sia tie-up, the sources said.

CDP Equity aims to keep a stake of at least 20% in Nexi-SIA after the Nets deal, one of the sources said.

CDP declined to comment.

Reporting by Pamela Barbaglia, additional reporting by Elisa Anzolin; editing by Agnieszka Flak

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