Credit Agricole, Banco Popolare agree $600 million Agos Ducato deal
PARIS (Reuters) - Credit Agricole (CAGR.PA) has reached a deal with Italy's Banco Popolare (BAPO.MI) over their troubled consumer credit joint venture Agos Ducato involving a capital injection, the French bank said on Wednesday.
Under the deal Agos Ducato's equity will be strengthened by around 450 million euros ($593 million), comprising a 300 million-euro share issue on a pro-rata basis and 150 million euros in subordinated loans, and a new business plan aims to help get the venture back to break-even in 2014, it said.
Credit Agricole has a 61 percent stake in Agos Ducato, while Banco Popolare controls the remaining 39 percent. Banco Popolare tried to sell its stake to Credit Agricole in 2011 but negotiations failed.
A prolonged and painful recession in Italy has driven up bad loans, forcing lenders to set aside more capital to cover non-performing debt.
(Reporting by Elena Berton; Editing by Greg Mahlich)
SYDNEY - Asian markets were finding their feet on Tuesday after a rocky ride the previous session, though uncertainty about the true state of China's economy kept nerves frayed and commodity prices restrained.
- U.S. small businesses borrowed more money in January than they did a year earlier, signaling continued growth in the economy despite a spate of cold weather that has been blamed for weakness in many other indicators of activity.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.