MILAN (Reuters) - UniCredit has devalued its stake in banking industry bailout fund Atlante by 80 percent, a document on its website showed, indicating Italy’s biggest bank has little hope of recouping money invested to prop up failing rivals.
Atlante was set up in April last year with 4.25 billion euros in contributions from Italy’s leading banks and insurers. It immediately rode to the rescue of Popolare di Vicenza and Veneto Banca, two regional lenders which failed to raise capital on the market.
Atlante has pumped a total 3.4 billion euros into the two lenders, which have now requested a state bailout as they need more capital to stay afloat.
The document showed that UniCredit had written down its 686 million euro stake in Atlante by 547 million euros.
Reporting by Gianluca Semeraro, writing by Valentina Za,