- Italian firm says Apollo wanted exclusivity, bid not binding
- Apollo proposed buying bad loans and injecting capital
Banca Carige SpA said it rejected an offer from U.S. investment firm Apollo Management International LLP to shore up its finances and clean up its books because the bid wasn’t binding and the U.S. fund sought exclusivity for talks.
Carige also said it wants to continue to hold discussions with other parties that may help it reduce the stock of bad loans, the Italian bank said in a statement Friday.
Apollo had proposed buying an unspecified amount of bad loans from the unprofitable bank and injecting 500 million euros ($572 million) out of a proposed 550 million-euro capital increase.
The European Central Bank in March instructed Carige to submit a new funding plan and a strategic review to restore compliance with supervisory requirements. Carige said March 3 it experienced a drop in deposits and difficult market conditions this year, and restated its 2015 net loss to 102 million euros, up from 45 million euros reported last month.