On Sept. 29, 2006, Standard & Poor's Ratings Services placed its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on Italian regional bank Veneto Banca SCRL on CreditWatch with negative implications. The CreditWatch placement follows Veneto Banca's proposed unconditional offer to acquire up to 75% of the shares of Banca Popolare di Intra SCPARL (BB/Watch Pos/B) at a price of €15, valuing Intra at €845 million (including full convertible bond conversion), a level exceeding three times its book value. An acquisition of Intra would substantially increase Veneto Banca's risk profile, and weaken its financial performance. The deterioration of capitalization will be mitigated by the substantial capital increases realized and projected by Veneto Banca to finance the proposed acquisition. The acquisition...
Companies mentioned in this report are:
- Veneto Banca SCPA
- Banca Popolare di Intra SCPA
Action: On CreditWatch:Negative
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Product Type: Research Update
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