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UniCredit Weighs Scaling Back Leasing Unit Sale After Turmoil

  • Bank considers selling smalling piece after offers disappoint
  • Unit has attracted interest from range of private equity firms

UniCredit SpA is weighing a reduction of the leasing assets that the Italian lender put on sale last year after receiving disappointing initial bids for the business, according to people familiar with the matter.

The bank is reviewing alternatives, including the sale of a smaller portion of the 10 billion euros ($10 billion) in assets, after offers last month came in substantially lower than its expectations of at least 350 million euros, the people said, asking not be named because the matter isn’t public. Higher funding costs are hampering the profitability outlook for possible buyers making the business less compelling, the people said.