Banco Popolare discussing sale of 300-400 mln euro bad debt "cluster"-CEO

MILAN Fri Aug 8, 2014 1:52pm EDT

MILAN Aug 8 (Reuters) - Italy's Banco Popolare is looking to sell chunks of soured loans after pulling the sale of a majority stake in its bad debt unit earlier this year and is currently in talks over the disposal of a 300-400 million euro pool, its CEO said on Friday.

CEO Pier Francesco Saviotti told an analyst call that the bank hoped to seal the sale of this "initial cluster" of bad loans in the first 10 days of September.

"After that, we'll start again working on other clusters we're devising in an attempt to meet the specific needs of different types of interested investors," he said.

At the beginning of the summer the bank dropped plans to sell a majority stake in its Release unit which holds and manages soured loans and real estate assets with a total gross value of 3.2 billion euros ($4.3 billion).

"On Release we may have been too ambitious but it was because others had expressed an interest," Saviotti said.

"We prepared a teaser for the sale of a 51 percent stake but in the end a couple of bidders were still there and they wanted to do cherry picking. We did not like the conditions. So we're now trying to put on the market some pieces or clusters." (1 US dollar = 0.7456 euro) (Reporting by Valentina Za and Andrea Mandala)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.