Banco Popolare SC, Italy’s fourth- biggest bank, was suspended from trade in Milan after slumping the most in more than five years on plans to sell as much as 1.5 billion euros ($2.1 billion) of shares to bolster capital.
Aviva Plc and Banco Popolare SC agreed to sell their 79.6 percent stake in Italian life insurer Eurovita Assicurazioni SpA to JC Flowers & Co. for 47 million euros ($64 million).
Banco Popolare SC, Italy’s fourth- biggest bank, plans to sell as much as 1.5 billion euros ($2.1 billion) in shares to repay debt and boost capital and said it would post a net loss for 2013.
Mario Draghi’s plan to shine a light on the balance sheets of euro-area banks is forcing lenders that are short of capital out of the shadows.
Banco Popolare SC was rated “buy” at Societe Generale SA, which initiated coverage of Italy’s fourth-biggest bank and set a price estimate of 5.9 euros.