Carige says management clash won't delay capital strengthening
MILAN Oct 17 (Reuters) - Italian mid-sized lender Carige said on Thursday a power struggle at its top shareholder would not delay or put into question its restructuring plan, which includes measures to strengthen its capital by 800 million euros ($1.09 billion).
A majority of board members at Fondazione Carige - a banking foundation that owns 47 percent of Carige - have asked the head of the foundation, Flavio Repetto, to resign.
Italian media have reported that Repetto's resignation could be followed by more departures at the bank, including that of newly appointed chairman Cesare Castelbarco Albani.
The turmoil at the top could also mean the bank may be put under special administration by the Bank of Italy, the reports said.
Carige said in a statement that fears linked to the management struggle were "totally groundless" and that the bank had "solid fundamentals."
It also said orders for a covered bond it priced on Thursday had topped 1.4 billion euros, confirming the bank's good reputation among domestic and international investors. It said demand could not be entirely met. ($1 = 0.7319 euros) (Reporting by Silvia Aloisi, editing by Stephen Jewkes)