MILAN, June 8 Intesa Sanpaolo is
willing to put in fresh capital to help prop up Italy's troubled
Veneto banks before they can be bailed out by the state, but
only if other domestic lenders pitch in, newspaper La Repubblica
said on Thursday.
* The newspaper added that Italian Economy Minister Pier
Carlo Padoan has asked the country's two biggest banks, Intesa
Sanpaolo and UniCredit, to take on one of the Veneto
banks each, following the example of Santander's
takeover of Spanish lender Banco Popular.
* Banca Popolare di Vicenza and Veneto Banca, both based in
the north-eastern Veneto region, have requested a state bailout
to help fill a combined capital shortfall of 6.4 billion euros
($7.21 billion). However, sources have said the European
Commission has demanded an additional injection of 1.2 billion
euros by private investors before taxpayer money can be used.
* Rome has so far struggled to find investors willing to put
up the money.
* Intesa's agreement in principle came on the condition that
other Italian banks would participate in the 1.2 billion euro
private capital injection, La Repubblica said.
* The Treasury declined to comment. Intesa Sanpaolo and
UniCredit could not immediately be reached for comment.
* Intesa Sanpaolo has repeatedly said that it had already
done its part by injecting money in banking fund Atlante, which
is now the top shareholder in the two regional lenders.($1 =
(Reporting by Agnieszka Flak and Paola Arosio in Milan and
Giuseppe Fonte in Rome; editing by Jason Neely)