IntesaBci Cedes Control of Argentine Subsidiary
IntesaBci, Italy's largest bank, is spending $150
million to recapitalize its Argentine unit and then cede control of
it in a merger with
Banco Patagonia SA, a local lender in southern
Argentina. The Italian bank will retain a minority stake in the
merged company, that will include Banco Sudameris Argentina's $584
million of assets and 99 branches along with Banco Patagonia's 289
million pesos of assets and about 30 branches.
UBS Warburg advised the Milan-based IntesaBci
on the transaction. The bank is divesting from Argentina and Brazil
as well as cutting as many as 8,000 jobs as it tries to regain
profitability after suffering losses in the second quarter.
IntesaBci acquired its Latin American unit, Sudameris, when it
Banca Commerciale Italiana in 1999. France's
Crédit Agricole and Canada's
Scotiabank cut their losses in Argentina by
walking away from their operations there following the government's
default last year and the January currency devaluation. In March,
IntesaBci agreed to sell its Brazilian unit...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.