Banks May Swap Premafin Debt Into Equity, Il Messaggero Says

Mediobanca SpA (MB) and UniCredit SpA (UCG) may convert loans given to Premafin Finanziaria SpA (PF) into equity as part of a plan to boost the capital of the holding company controlling Fondiaria-SAI SpA (FSA), newspaper Il Messaggero said, without saying where it got the information.

Separately, executives of Unipol Gruppo Finanziario SpA (UNI) and Premafin will meet in Milan today to discuss a potential merger with Fondiaria, the daily newspaper reported.

Premafin, Unipol and Fondiaria yesterday rose in Milan trading on speculation the three companies may merge.

To contact the reporter on this story: Sonia Sirletti in Milan at ssirletti@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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