ECB extends mandate for Italian bank Carige’s administrators to September 30

FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo

MILAN (Reuters) – Banca Carige said on Saturday the European Central Bank had extended until Sept. 30 a mandate to three temporary administrators who have been put in charge of the troubled Italian bank.

The bank said the ECB wanted to give the three administrators enough time to complete actions needed for Carige to comply with capital requirements in a sustainable manner.

The ECB has also extended the mandate of a three-member supervisory committee, the bank said.

Carige was placed under special administration at the start of the year after its top investor in December blocked a planned capital raising, derailing a rescue plan financed by the industry.

The bank has said it needs to fill a 630 million euro ($707 million) capital shortfall and the temporary administrators are seeking offers from potential buyers by mid-April.

Sources have told Reuters that Minnesota-based Varde Partners and a specialist fund affiliated with BlackRock plan to submit bids.

Sources familiar with the matter said on Saturday that Lazard and consultancy AlixPartners were working with Varde on a possible offer while Mediobanca was advising the BlackRock fund.

No final decision on submitting bids has yet been taken, one source said. A second source said the tight April deadline made things difficult.

Under emergency measures approved in January following the ECB’s move, the Italian government stands ready to inject up to 1 billion euros in capital into Carige by end-September should a private solution fail to come through.

Reporting by Valentina Za; Editing by Andrew Heavens and Catherine Evans


Author: Prakash Poojary

Business Analyst

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