Although neither BlackRock nor Carige gave a reason for the pullout, sources say BlackRock’s reasons include excessive risks.
On Thursday, U.S. asset manager BlackRock stated, it has pulled out of a proposed rescue of Italian bank Carige, which raises the prospect of the Italian government getting drawn into yet another costly state bailout.
BlackRock was slated to purchase nearly 50% of the $806 million (720 million euro) share issue following which it would have controlling stake of the country’s 10th-biggest bank based in Genoa.
According to sources, BlackRock rejected the proposed acquisition for reasons which include excessive risks.
Although Carige issued a statement on BlackRock’s withdrawal, it however dod not provide a reason for its pullout.
In recent years, Carige has been weighed down by mismanagement and an excessive exposure to the depressed economy of the northwestern Liguria region.