Spanish Cajas Block Merger, Forcing CAM to Seek State Rescue
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Three Spanish savings banks rejected a plan to merge into the nation’s third-largest caja, forcing Caja de Ahorros del Mediterraneo to seek a state bailout.
Cajastur, Caja de Extremadura and Caja Cantabria voted against combining their businesses with CAM in a new entity known as Banco Base. CAM said it would seek support from the state rescue fund, which operates by taking ordinary shares with voting rights, meaning at least partial nationalization of any lender that seeks help.