Italy's Banco Desio says to make offer for Pop Spoleto
MILAN Nov 28 (Reuters) - Small Italian lender Banco di Desio e della Brianza said on Thursday it would make an offer to buy troubled peer Banca Popolare di Spoleto in a deal that would help revamp its commercial network.
Popolare Spoleto is looking for a buyer after being put under special administration by the Bank of Italy earlier this year following an inspection that showed "serious irregularities and large expected capital losses."
"The board has decided to continue the procedure to acquire control of Pop Spoleto and therefore to launch an offer," Banco Desio said in a statement.
It said that its capital ratios would remain "more than adequate" if it completed the acquisition of Pop Spoleto, and ruled out needing any capital increase.
Banca Popolare di Vicenza has also expressed interest in a possible offer for Pop Spoleto.
Small lenders were hit hard by Italy's longest post-war recession and a spike in bad loans. Many need to raise fresh capital and the regulator is encouraging alliances with healthier peers. (Reporting by Danilo Masoni; Editing by Elaine Hardcastle)