Intesa Sanpaolo (BIT:ISP)
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1 Month : From Nov 2019 to Dec 2019
By Pietro Lombardi
Intesa Sanpaolo SpA (ISP.MI) and Italian payment company Nexi SpA (NEXI.MI) are in preliminary talks over "possible transactions aimed at strengthening the commercial partnership already existing between the two companies," the Italian bank said Wednesday.
The statement comes after Italian daily Il Messaggero reported that the companies were working on a deal that would include the bank transferring its acquiring business to Nexi and taking a stake of 30% to 40% in the payment company.
"These possible transactions would not entail for Intesa Sanpaolo any obligation to promote a takeover bid," it said.
Shares in Nexi gained ground on Wednesday following the report and traded 3.3% higher at 1153 GMT.
"We believe that from an industrial point of view the operation would make sense for Nexi as the payment business is one of scale and significant synergies could be generated," Equita SIM analyst Giovanni Razzoli said.
The payment company confirmed the talks but said the news about the bank taking a stake of 30% to 40% was "groundless."
"Nexi does specify that these contacts are entirely preliminary and no project has been defined, either of an industrial or financial nature, that contemplates economic values," it said.
"In any case, any hypothetical operation can only be consistent with the mission of Nexi to be the Paytech - independent partner - of the entire Italian banking system."
Write to Pietro Lombardi at firstname.lastname@example.org
(END) Dow Jones Newswires
November 20, 2019 07:24 ET (12:24 GMT)
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