© Reuters. FILE PHOTO: The Carige bank logo is seen in Rome
MILAN (Reuters) – Italian banks are in talks with BlackRock (NYSE:) over a possible deal to salvage troubled lender Carige, the head of a depositor guarantee fund financed by the banks said on Wednesday.
Italian banks used a voluntary-contribution scheme set up under the depositor fund to come to Carige's rescue in November. The scheme bought a 320 million euro hybrid bond needed to boost the bank's total capital ratio. A conversion into equity of the bond would now support BlackRock's rescue plan for Carige.
A conversion is now "very likely" but no decision has been taken yet, the depositor guarantee fund's President Salvatore Maccarone told reporters after a meeting over the issue, adding talks with BlackRock were ongoing.
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