The best part about financial institutions tripping from a bad
investment call is the talk of M&A deals that follow.
Italy looks set to spring a few for a global market that is
expecting a drought in deal flow.
Go deeper with GlobalData
Aptly, executives at Banco Popolare, the largest shareholder of
Banca Italease, have not concealed their motive to find a partner
for Italease.
The leasing and factoring arm, which booked €526m in losses from
derivatives trading, has become a burden to Italy’s fourth largest
lender.
Last month, Popolare’s managing director, Massimo Minolfi hinted
that three or four companies were interested in a strategic
partnership and that a deal may be closed by
end-September.
Then, later in the month, Italease’s chairman, Lino Benassi,
announced the new partner would ideally be foreign and have a
Triple-A bond rating.
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By GlobalDataMeanwhile, Italease is expected to post an operating profit for
the first quarter signalling quick action by its management to tidy
up the balance sheet. Italease has also made a cash call of €700m
from its shareholders and hired Lazard to find buyers for its €400m
real estate portfolio to help shore up the balance sheet.
For some time speculation had been rife that France’s Credit
Agricole was interested in Italease, but that has now been quelled
by reports that it was about to set up a leasing unit in
Italy. Credit Agricole is preparing to acquire assets from
Leasint, the leasing division of Intesa Sanpaolo. The French bank
has a 5.4 per cent stake in Intesa Sanpaolo.
Credit Agricole’s leasing division, CA Leasing, reported €5.1bn
in revenue last year.
Elsewhere, Sardaleasing, the subsidiary of Banco di Sardegna,
reported a net profit of €4.4m for 2007.
