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ECB extends mandate for Italian bank Carige's administrators to September 30

Published 30/03/2019, 12:22
© Reuters. Reflection of the sign of the European central Bank (ECB) is seen ahead of the news conference on the outcome of the Governing Council meeting, at the ECB headquarters in Frankfurt
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MILAN (Reuters) - Banca Carige said on Saturday the European Central Bank had extended until Sept. 30 a mandate to three temporary administrators who have been put in charge of the troubled Italian bank.

The bank said the ECB wanted to give the three administrators enough time to complete actions needed for Carige to comply with capital requirements in a sustainable manner.

The ECB has also extended the mandate of a three-member supervisory committee, the bank said.

Carige was placed under special administration at the start of the year after its top investor in December blocked a planned capital raising, derailing a rescue plan financed by the industry.

The bank has said it needs to fill a 630 million euro ($707 million) capital shortfall and the temporary administrators are seeking offers from potential buyers by mid-April.

Sources have told Reuters that Minnesota-based Varde Partners and a specialist fund affiliated with BlackRock (NYSE:BLK) plan to submit bids.

Sources familiar with the matter said on Saturday that Lazard and consultancy AlixPartners were working with Varde on a possible offer while Mediobanca was advising the BlackRock fund.

No final decision on submitting bids has yet been taken, one source said. A second source said the tight April deadline made things difficult.

© Reuters. Reflection of the sign of the European central Bank (ECB) is seen ahead of the news conference on the outcome of the Governing Council meeting, at the ECB headquarters in Frankfurt

Under emergency measures approved in January following the ECB's move, the Italian government stands ready to inject up to 1 billion euros in capital into Carige by end-September should a private solution fail to come through.

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