Fondiaria-SAI merger halt compatible with capital increase
MILAN, April 27 |
MILAN, April 27 (Reuters) - Italian insurer Fondiaria-SAI's capital increase scheduled for June gives enough time for the Antitrust Authority to complete its probe into the insurer's planned merger with smaller competitor Unipol , said a Mediobanca executive on Friday.
The antitrust agency suspended the planned merger of Fondiaria-SAI and peer Unipol on Thursday for 45 days in order to investigate potential risks to competition from the tie-up, further clouding prospects for the deal.
The agency said in a statement the suspension was to prevent "the next steps in the operation creating effects hard to reverse with regard to the capital of the companies involved".
In January top investment house Mediobanca brokered a complex deal for Unipol to save the loss-making Fondiaria-SAI via a four-way merger involving three capital hikes.
"The 45-day period is compatible with a June schedule for the capital increase," said Mediobanca Chief Executive Alberto Nagel on the sidelines of a presentation in Milan.
(Reporting by Jennifer Clark)
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