Deals
Intesa Proposes Buying Veneto Banks' Assets for Token Price
- Lender would only do deal on condition that its CET1 not hurt
- Analysts say solution would be different than Popular rescue
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Intesa Sanpaolo SpA offered to take on the assets of two troubled lenders in Italy’s northern Veneto region for a token price on the condition that it wouldn’t harm its own capital and dividends. Its shares rose.
The bank’s proposal excludes soured debt, higher-risk performing loans and subordinated bonds, along with shareholdings and other “legal relationships,” Intesa said in a statement on Wednesday. A purchase would only move forward if it doesn’t lower Intesa’s common equity Tier 1 ratio, the bank said.