Carige\'s administrator says share issue might not be needed

Carige's administrator says share issue might not be needed

Reuters  |  MILAN 

(Reuters) - Italy's may not need to raise capital from shareholders if it quickly finds a merger partner, one of the troubled lender's special administrators said on Monday.

The (ECB) last week selected three administrators to take charge of to try to save the after its top shareholder blocked a new share issue that was part of an industry-financed rescue.

The has had preliminary contacts with over potentially buying the bank's bad loans to try to revive its fortunes.

"A share issue might not be necessary if we quickly find a partner or if we manage to revamp the group's structure in a more efficient way," told la Repubblica's Monday supplement Affari&Finanza, adding that "all roads remain open, what matters is to be fast".

The ECB has told Carige to consider a merger with another

Carige's M&A would need at least six months to look for a partner for a merger, daily reported on Sunday.

Lener said the bank's special administrators needed to meet the heads of the FITD fund to review the terms of a hybrid bond that the fund bought from Carige at the end of last year to help it meet its capital requirements.

The Corriere's report said the meeting could likely take place on Wednesday.

The bond can be converted into equity.

Lener said the bank's administrators needed to win approval from Italy's market watchdog Consob for trading in Carige's shares and bonds, which are currently suspended, to resume. He said that the suspension was an issue for the bank's image and liquidity.

"There is no reason to exclude that, after initial turbulence, securities will be allowed to trade, or at least bonds," he said.

(Reporting by Giulio Piovaccari; Editing by Jason Neely/Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 07 2019. 14:25 IST