(Changes first sentence to read "given" instead of "asked")
MILAN, March 25 Unicredit has given
prospective buyers of its debt collection business Credit
Management Bank until the beginning of April to submit outline
offers, two sources close to the matter said on Tuesday.
As part of a wider effort to strengthen its balance sheet,
Italy's biggest bank by assets plans to sell off a portfolio of
around 4 billion euros of non-performing loans along with a
majority stake in Credit Management Bank itself, the sources
Verona-based Credit Management Bank currently manages more
than 40 billion euros ($55 billion) of commercial and consumer
loans, more than a third of Italy's entire non-performing loans
market. In the past around a quarter of the total loans managed
by CMB have been directly owned by the bank, an analyst said.
"Investors interested in Credit Management Bank have
received a document with the relevant data on the company and
will file non-binding offers by the beginning of next month,"
one of the sources said.
UniCredit declined to comment on the issue.
Unicredit is in the throes of restructuring its balance
sheet as it prepares for the financial health checks which
European regulators plan to conduct on their banks this year.
Earlier this month the bank posted a record annual net loss
of 14 billion euros due in part to further heavy writedowns on
The bank aims to have a Tier 1 common equity capital
adequacy ratio under new Basel III industry rules of 10 percent
of risk-adjusted assets by 2016, up from 9.4 percent at the end
of 2013 and well above a minimum regulatory requirement of 8
(Reporting by Francesca Landini; Editing by Greg Mahlich)