September 20, 2019 / 10:26 AM / 2 months ago

Shareholder approval for Carige rescue package not yet assured

GENOA (Reuters) - Investors representing 47.5% of Carige’s voting capital (CRGI.MI) were present at a meeting on Friday to approve a 900 million euro package to save the Italian lender from liquidation, one of the bank’s temporary administrators said.

Such an attendance would be insufficient to push the plan through if Carige’s top shareholder, the billionaire Malacalza family, voted against it with its 27.5% stake.

A source familiar with the matter said the Malacalzas had not yet registered their stake to be able to vote at the meeting. They could still do so just before the vote on the plan.

If they abstain it would amount to a rejection while if they fail to register the stake altogether the plan would likely be approved.

In December the Malacalzas derailed rescue efforts by blocking a 400 million euro ($442 million) cash call, prompting the European Central Bank to place Carige under special administration.

The family of steel billionaires has spent more than 400 million euros on a stake which is worth now just 23 million euros and would be drastically diluted if the recapitalization plan goes through.

Reporting by Andrea Mandalà; editing by David Evans

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