January 10, 2019 / 12:08 PM / 7 months ago

Italy's Popolare di Bari to seek 500 mln euros from investors-source

MILAN/ROME, Jan 10 (Reuters) - Italy’s Popolare di Bari plans to raise up to 500 million euros ($577 million) from investors in a critical attempt to shore up its balance sheet, a source familiar with the matter said on Thursday.

The source said that the outcome of the capital raising was uncertain because it was unclear how the market would respond.

A failure to raise private capital this month led to bigger rival Carige being placed under special administration by the European Central Bank, forcing the government to pledge up to 1.3 billion euros in support funds.

A Bank of Italy source said Popolare di Bari was working on presenting a new business plan and the central bank was following the issue closely.

Popolare di Bari declined to comment. News of the capital raising was first reported by daily Il Messaggero. (Reporting by Valentina Za and Stefano Bernabei, editing by Agnieszka Flak)

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