(Updates to add KKR's response)
April 21 Italy's two largest banks, UniCredit
and Intesa Sanpaolo, are teaming up with U.S.
private equity firm Kohlberg Kravis Roberts to pool
some of their bad loans into a vehicle that will provide fresh
capital for the struggling companies, the Financial Times
The preliminary agreement, which also involves restructuring
adviser Alvarez & Marsal, will be announced on Tuesday, the
paper said on its website on Monday.
The announcement is likely to say the four companies have
signed a memorandum of understanding but are still working out
many details, FT said.
The vehicle could house several billion euros of loans, the
The two Italian banks are considering how much of their bad
loan portfolio to transfer into the vehicle and whether to
contribute fresh funds themselves, the FT reported.
KKR declined to comment on the article.
UniCredit, Intesa, and Alvarez & Marsal could not
immediately be reached for comment outside regular working
(Reporting by Karen Rebelo in Bangalore; Editing by Richard
Chang, Bernard Orr)