Italy's largest banks in talks with KKR over loans

|By:, SA News Editor

"It's a project concerning [loans to] restructured companies, so it's not a bad bank," says UniCredit (UNCFF, UNCFY) CEO Federico Ghizzoni, confirming his bank and Intesa Sanpaolo (ISNPY) are in talks with KKR. Among the possibilities is the setting up of a vehicle to hold the two lenders' restructured loans, with KKR injecting equity into the indebted companies.

As of the end of Q3, Intesa and UniCredit had a combined $14.5B in gross restructured loans, and the government would be pleased to see them removed from their books.