Merger to create Italy's largest bank
Ap, Rome
Banca Intesa SpA and Sanpaolo IMI SpA said Saturday they agreed to merge, creating Italy's biggest bank in what one official hailed as a sign of vitality in the economy.The banks said the new group would have about $650 billion in combined assets and a market capitalization of more than $76.6 billion. The banks said they expect the new group will have a 20 percent market share and show annual net growth of about 13 percent in the period up to 2009. The merger was expected to be completed by early 2007 and the new group will be based in Turin in northern Italy. The boards of the two lenders approved the deal in separate meetings. Banca Intesa Chairman Giovanni Bazoli called the merger a sign of vitality for Italy. The new bank "will be a point of strength for our country's economy, and will be able to act as a protagonist on the European scene," he said in a statement. Under terms of the deal, which will be presented to shareholders for approval in December, 3.115 Intesa shares will be offered for every Sanpaolo share.
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