MILAN Jan 13 Italy's newly merged bank Banco
BPM on Friday denied any wrongdoing after documents
showed that Milan prosecutors were investigating possible market
manipulation connected to the tie-up between BPM and Banco
Popolare to create the new lender.
"Banco BPM, as well as Banco Popolare and BPM previously,
have acted in full respect of the law and have given to the
market and shareholders all due information," the bank said in a
The bank, Italy's third largest, confirmed that prosecutors
had opened a probe into alleged market manipulations.
Sources with direct knowledge of the matter had said Italy's
tax police seized documents on Friday as magistrates looked 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
Banco BPM said that tax police did not seized any documents
as part of their probe.
(Reporting by Francesca Landini)