MILAN (Thomson Financial) - Banca Italease SpA said on Saturday that market regulator Consob found irregularities in the leasing and factoring company's 2006 accounts, leading to the group to possibly have to re-state last year's balance sheet.
In particular the group said Consob ruled that Italease did not properly assess and properly record in its balance sheet the over-the-counter derivatives contracts it signed with clients.
Consob also questioned the correct balance sheet accounting of upfront commissions paid to Italease and the lack of proper disclosure in its balance sheet on its OTC derivatives and their inherent risks.
Italease said Consob's findings do not jeopardize the integrity of the group's assets.
Since May, Italease shares lost more than 70 pct of their value as the group disclosed a huge exposure to derivatives. Since then, the company renewed its management, approved an up to 700 mln eur capital hike, and obtained 950 mln financing from its shareholders.
Banca Italease said its board will assess Consob's findings. The group's board is scheduled to meet tomorrow afternoon to approve third quarter results. yael.schrage@thomson.com ysc/rw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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