Merger speculation sees suspension of Banca Civica shares
Speculation of a merger resulted in Banca Civica shares being pulled from trading.
Speculation that Banca Civica would look to merge with another firm - a process that could require negotiation consultants - resulted in the Spanish bank's shares being suspended from trading.
The Financial Times reported the company could seek to combine with other institutions to cope with an expected proposal from the nation's government, which intends to force banking groups to clean their balance sheets by realising larger losses on their real estate loans.
When the enterprise stated it had not yet reached an agreement with the unnamed organisations it was discussing the possibility of a merger with, the suspension was lifted.
"In the Spanish banking system's current process of restructuring, [Banca Civica], like most banks, is studying options with various different entities," the Wall Street Journal quoted the corporation as saying in a regulatory filing.
Its shares already experienced an intraday gain greater than ten per cent during Wednesday trading and had risen another three per cent before they were pulled on Thursday.
Posted by Ken Hayes
Source: Financial Times, Thursday January 26th