FONDIARIA-SAI AND ITALEASE IN ALLIANCE RENEGOTIATIONS

Italian insurer Fondiaria-SAI and locally based bank Italease are in discussions about changing the terms of their strategic alliance, reported Il Sole 24 Ore at the weekend. The unsourced report claimed that negotiations were taking place after Italease encountered problems related to its derivatives exposure. The newspaper said that the pair’s bancassurance agreements would likely be maintained, but that the sale of a 50% stake in Banca SAI to Italease might be delayed, or even abandoned. Italease confirmed Friday that it had closed out 80% of its mark-to-market derivative positions for an outlay of €610m. Italease said that it retained open positions that were currently showing a loss of €120m. In April, Italease agreed to pay €71m to Fondiaria-SAI for a half-stake in Banca SAI, 80% of SAI Asset Management SGR and 5% of Effe Vita. Italease’s shares were suspended limit down this morning, having dropped more than 10% in morning trade and having lost more than half their value since the middle of May.