MILAN, Nov 21 (Reuters) - Italian mid-tier lender Credito Valtellinese is in talks with banks to set up a consortium to underwrite its planned 700 million euros ($822 million) capital increase, a source close to the matter said on Tuesday.
Investment bank Mediobanca, which is also advising the bank on potential merger options, has already signed a pre-underwriting agreement to guarantee the cash call, which Creval needs to fund a balance-sheet clean up under a turnaround plan.
The source, who requested anonymity because the matter is confidential, said the first window of opportunity to launch the cash call was February 2018, ruling out that the transaction could be brought forward.
It said that Creval’s main shareholders - led by French entrepreneur Denis Dumont who holds a stake of nearly 6 percent in the lender - had expressed interest in the bank’s restructuring but it was too early to say whether they would commit to buying into the cash call. ($1 = 0.8515 euros) (Reporting by Gianluca Semeraro and Andrea Mandala; writing by Silvia Aloisi)