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By Nathan Allen
BlackRock Inc. (BLK) has backed out of a mooted rescue of struggling Italian lender Banca Carige SpA (CRG.MI), the bank said Thursday, potentially paving the way for a state bailout.
The U.S. fund was reportedly preparing to subscribe to around half of a 720 million-euro ($806.2 million) planned capital increase aimed at restoring the bank's finances. Banca Carige said the fund pulled out following an elaborate preparatory phase.
"Assessments of alternative market solutions to ensure the stability and relaunch of Banca Carige are continuing," the bank said.
Carige said the move won't prevent it from potentially applying to Italy's finance ministry for a precautionary recapitalization.
The European Central Bank in January appointed temporary administrators to the bank after a majority of its board members resigned.
Carige presented in February its business plan, which included a capital increase and a significant derisking.
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(END) Dow Jones Newswires
May 09, 2019 05:45 ET (09:45 GMT)
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