Italy banking rescue fund set to take over Popolare Vicenza

Milan

ITALY'S government-orchestrated banking rescue fund will buy most of the shares in Banca Popolare di Vicenza SpA's 1.5 billion-euro (S$2.3 billion) capital increase through an initial public offering after institutional investors showed little interest.

Investors offered to buy 7.7 per cent of shares on sale, leaving the Atlante fund with 1.39 billion euros of stock offered in the IPO, Popolare Vicenza said in a statement on Saturday. Ten institutional investors subscribed for a 5.1 per cent stake, according to the Vicenza, Italy-based bank. Investment bank Mediobanca subscribed for about 5 per cent of the initial public offering, a person with knowledge of the matter said on Saturday.