Merrill Could Pay $2.6 bln in Italian Debt Purchase

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00006728-merrill-could-pay-26-bln-in-italian-debt-/

A consortium led by U.S. investment bank Merrill Lynch could pay about 2 billion euros ($2.61 billion) for non-performing loans it is in talks to buy from Italy’s Banca Intesa, a source familiar with the situation said.

Intesa is in talks with the group, which also includes U.S. investor Fortress Investment Group, over the sale of a portfolio of more than 10 billion euros ($12.96 billion) of bad loans, the source said on Tuesday.

The group could reach a deal to buy the portfolio within a month, the source.

The talks could yet fail to lead to a deal, however. “It’s all dependent on negotiations,” said the source.

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