MILAN: Quaestio Capital Management, which manages Italian bank rescue fund Atlante, said on Wednesday the European Central Bank had authorised it to take a stake of more than 50 percent in Veneto Banca.

The Italian regional bank has launched a 1 billion euro ($1.1 billion) initial share offer to plug a capital shortfall and avoid being wound down. The offer to current shareholders ends on Wednesday.

A source close to the matter told Reuters earlier on Wednesday take-up for the offer stood at around 1 percent and that the IPO would likely fail.

Copyright Reuters, 2016