Banca Popolare di Milano is planning a €1.2 billion share capital increase, The Wall Street Journal reports. The Italian lender is seeking to issue new shares to its existing shareholders and holders of convertible bonds. The Milan-based bank, which has to reimburse a €500 million government bond by 2013, rejected a proposal to sell new shares to boost its capital two weeks ago, adds Bloomberg. Pop Milano seeks to have a Tier 1 Core capital of 8.6% this year with the rights issue and the bancassurance deal with French insurance group, Covea Groupe.
Click here for the story from The Wall Street Journal.
Click here for additional coverage from Bloomberg.