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Popolare's Agos sale to Agricole on hold

MILAN : Talks to sell part of Banco Popolare's stake in joint venture Agos Ducato to Credit Agricole have been put on st

Published August 22, 2011 Updated August 22, 2011 02:58pm

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By Muhammad Iqbal

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Italy's Popolare owns 39 percent of Agos Ducato, a consumer finance company. It has been in talks to sell 19 percent to Credit Agricole.

Talks have been put on hold because of problems Agricole faces on the international front, the source said. Il Sole 24 Ore business daily on Sunday blamed the hold-up on market turmoil and worries about Agricole's Greek exposure.

Agricole said last month an expected loss at Greek unit Emporiki and participation in a European rescue package for Greece would force it to take a second-quarter provision of up to 850 million euros ($1.2 billion).

Popolare Chief Executive Pier Francesco Saviotti said in late June that talks with Agricole over Agos Ducato were "difficult".

In comments to a newspaper in February Saviotti said selling down the bank's Agos Ducato stake could boost its Core Tier 1 ratio by 40-50 basis points.

The source said talks on sale of Popolare's Hungarian operations were speeding up, largely confirming a story in Il Sole 24 Ore on Sunday. The business daily said the buyer would be an unidentified Hungarian financier.

Shares in Banco Popolare were up 2.12 percent at 1.202 euros at 1112 GMT. The STOXX Europe 600 banking index was 0.52 percent higher.

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