Banks May Swap Premafin Debt Into Equity, Il Messaggero Says

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

Separately, executives of Unipol Gruppo Finanziario SpA 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.