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.
European stocks advanced to a six- year high after a report showed the U.S. economy created more jobs last month than forecast.
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, 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.
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).
European stocks posted a weekly gain as better-than-estimated U.S. data bolstered investor confidence the economic recovery is on course, outweighing an escalation in the crisis in eastern Ukraine.
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.