MILAN Jan 24 Banca Popolare di Milano (BPM)
will launch a planned cash call only after approving a
new business plan and governance changes requested by the Bank
of Italy, the chief executive of the Italian cooperative lender
was quoted as saying on Friday.
"To tap the market we first need to approve 2013 results,
draw up the three-year plan and change the governance structure
in accordance with what the market itself, besides regulators,
is asking for," newly-appointed CEO Giuseppe Castagna told
financial daily Il Sole 24 Ore.
BPM last Friday chose veteran banker Castagna as its new
chief executive. He was formally appointed this week.
The Bank of Italy is urging cooperative lenders like BPM to
reform in order to give shareholders powers that better reflect
the size of their stakes.
"I believe we need some changes to our bylaws, mainly to
give institutional investors the weight they deserve and allow
them to bet on us without being penalised," Castagna, formerly
at Intesa Sanpaolo, said.
BPM needs to raise fresh capital to reimburse 500 million
euros ($684 million) in state aid. Its governance reform and
fundraising plans suffered a setback when former CEO Piero
Montani left in October after a clash with the bank's
Shares in BPM were up 1 percent by 0813 GMT against a flat
European banking stock index.
($1 = 0.7310 euros)
(Reporting by Valentina Za; Editing by David Holmes)