MILAN Jan 13 Milan prosecutors are probing
charges of market manipulation in relation to a merger deal
between Banca Popolare di Milano and Banco Popolare to create
Italy's third-largest bank Banco BPM, a court document
showed on Friday.
Sources with direct knowledge of the matter said Italy's tax
police seized documents on Friday as magistrates look into
allegations the banks failed to tell shareholders and investors
ahead of the closing of the merger that the European Central
Bank had raised objections over loan loss coverage levels at
No person is under investigation, the sources said.
The bank was not immediately available for a comment.
(Reporting by Manuela D'Alessandro and Emilio Parodi; writing
by Valentina Za; editing by Francesca Landini)