Italy's Creval drops plan to merge with Tercas

MILAN Tue Oct 8, 2013 6:02am EDT

MILAN Oct 8 (Reuters) - Italian mid-tier lender Credito Valtellinese said on Tuesday its board had decided not to start talks for a merger with troubled peer Banca Tercas, as conditions were not in place.

Creval, which holds 7.8 percent of Tercas, said last month it had started a due diligence on Tercas, which is under special administration, to evaluate the possible tie-up. (Reporting by Francesca Landini, editing by Danilo Masoni)