ROME (dpa-AFX) - Italy's two largest banks UniCredit and Intesa Sanpaolo are banding together with U.S. private equity firm Kohlberg Kravis Roberts to pool some of their bad loans into a vehicle that will provide fresh capital for the struggling companies, reported Financial Times.
The banks have reportedly signed a preliminary agreement with Kohlberg Kravis Roberts and restructuring adviser Alvarez & Marsal.
According to FT, the announcement on the signing of a memorandum of understanding between four parties would be on Tuesday and the vehicle could house several billion euros of loans.
FT reported that UniCredit and Intesa are considering how much of their bad loan portfolio to transfer to the vehicle and whether to contribute fresh funds themselves.
Copyright RTT News/dpa-AFX