World Bank's IFC asks for review of Itau, CorpBanca deal
Reuters
Published Jul 08, 2014 04:12PM ET
World Bank's IFC asks for review of Itau, CorpBanca deal
SANTIAGO (Reuters) - The International Finance Corp (IFC), the World Bank's private investment arm, is seeking an independent analysis of Brazilian bank Itaú Unibanco Holding SA's planned takeover of Chile's CorpBanca, in which the IFC holds a 5 percent stake.
The IFC needs to give its consent for the deal to materialize, CorpBanca said in a filing with Chile's SVS securities regulator on Monday night.
On Tuesday afternoon, the IFC said in an e-mailed comment to Reuters that it "continues to analyze the proposed merger and has not yet determined its position."
CorpBanca said in a statement that the IFC "has requested an investment bank to evaluate the terms and conditions of the deal." This is part of the IFC's analysis of "whether to give (the deal) its consent, a prerequisite for the realization of the transaction," the Chilean bank added.
The tie-up between regional peers Itaú (SA:ITUB4) and CorpBanca (SN:COB), which would be Latin America's largest banking combination since 2008, has already faced stiff resistance from minority shareholder U.S. investment firm Cartica Management LLC.
Cartica, which oversees about $2 billion in assets and owns about 3.2 percent of CorpBanca's common shares, has argued that Itaú and CorpBanca's controlling shareholder, billionaire Alvaro Saieh, violated U.S. anti-fraud and disclosure rules.
(Reporting by Anthony Esposito; Editing by Chizu Nomiyama)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.