Renewable Energy

Carige buyers should not expect big sacrifices from banks' creditors-Banco BPM CEO

Credit: REUTERS/Stefano Rellandini

Any potential bidder for troubled Italian bank Carige should not expect the lenders' creditors to shoulder big losses for their own benefit, the chief of one of Carige's creditor banks said on Thursday.

MILAN, June 20 (Reuters) - Any potential bidder for troubled Italian bank Carige CRGI.MI should not expect the lenders' creditors to shoulder big losses for their own benefit, the chief of one of Carige's creditor banks said on Thursday.

Giuseppe Castagna was answering questions about a rescue bid for Carige that according to sources has been put forward by U.S. private equity fund Apollo Global Management APO.N.

Local media reports have said the proposal would require a depositor guarantee fund comprising all of Italy's banks to first convert into equity a 320 million euros Carige bond they own and then agree to sell a majority stake to Apollo for one euro.

Castagna did not mention Apollo by name, simply saying Italian banks had received a draft proposal for Carige by an unnamed fund which was still at a very early stage.

"It's a bit difficult to think that someone can take a stake and get the benefits while requiring the banks to shoulder the sacrifices," Castagna said.

(Reporting by Gianluca Semeraro, editing by Silvia Aloisi)

((silvia.aloisi@thomsonreuters.com; +39 02 66129 723; Reuters Messaging: silvia.aloisi.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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