MILAN (Reuters) - Italy’s BPER Banca (EMII.MI) estimates it will need to raise 600-700 million euros in a new share issue to fund a revised deal to buy branches and assets from Intesa Sanpaolo (ISP.MI), two sources with knowledge of the matter said on Monday.
BPER has already approved a cash call worth up to 1 billion euros ($1.1 billion) to finance the deal with Intesa. The cash call is guaranteed by Mediobanca and BPER’s single biggest shareholder Unipol (UNPI.MI) has said it will subscribe to it.
Under the previous deal, BPER had expected the cash call to total 400-500 million euros.
Reporting by Andrea Mandala anad Valentina Za; editing by Agnieszka Flak