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Unicaja Asks a Bad Bank to Takeover Caja Duero, El Pais Says

Unicaja, a Malaga, Spain based lender which is buying smaller rival Caja Espana-Caja Duero, wants the central bank and the government to provide funds to create a bad bank before it goes ahead with the deal, El Pais reported, citing unidentified people familiar with the deal.

Unicaja may ask that Spain’s authorities to pump between 1.5 billion euros ($1.9 billion) and 1 billion euros into Caja Espana-Caja Duero, which would be used offload the bad assets of the acquired lender, El Pais said.

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