Sunday, 17 Nov 2024

Italy's Carige hires BCG as adviser, says tie-up still main goal

MILAN (Reuters) – Italy’s Banca Carige has hired Boston Consulting Group to help it study ways to develop its business, including through a merger which remains the troubled lender’s main goal.

Genoa-based Carige said in a statement on Wednesday it would continue to pursue a tie-up even after tax incentives for bank mergers expire at the end of the year.

Loss-making Carige is controlled by Italy’s FITD depositor protection fund after being rescued by healthier peers back in 2019 at a cost of 700 million euros ($810 million).

It has warned it needs another 400 million euros in capital by the third quarter of 2022.

The FITD fund is struggling to find a buyer for the bank after rival Cassa Centrale Banca earlier this year walked away from a potential acquisition.

($1 = 0.8639 euros)

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