MILAN (Reuters) - Shares in several Italian cooperative banks rose strongly on Wednesday after the government approved an emergency decree that forces the largest 'popolari' to change their governance rules and become joint stock companies within the next 18 months.
Analysts says the changes will speed up an expected new consolidation wave in the sector, and could attract investors as the cooperative banks will be forced to drop rules giving every shareholder one vote regardless of the size of the stake.
By 0819 GMT shares in Credito Valtellinese (MI:PCVI) rose more than 6 percent, Banco Popolare (MI:BAPO), Popolare Milano (MI:PMII) and Popolare Emilia (MI:EMII) were up more than 5 percent. Shares in Popolare Etruria (MI:PEL), which has long been looking for a merger with a stronger rival, rose 9 percent.
The decree, which has many political opponents, must be approved by parliament within 60 days.