BPM, FonSai to dissolve JV by year-end

Italian Banca Popolare di Milano (BIT:PMI) and insurer Fondiaria SAI (BIT:FSA), or FonSai, could soon reach an agreement regarding their bancassurance joint venture Bipiemme Vita over the coming weeks, the Radiocor agency reported on Thursday without naming any sources.BPM intends to purchase the 51% interest in Bipiemme Vita of FonSai for EUR120m (USD181.1m), Radiocor said.Meanwhile, BPM is eyeing a new bancassurance partnership and is currently negotiating with French Credit Mutuel. If the outcome of the talks is unfavourable, BPM would open call for bids by interested parties, among which are Italian insurers Generali (BIT:G) and Cattolica Assicurazioni (BIT:CASS).BPM and Fondiaria-SAI inked a joint venture deal in 2006 for a period of five years with a possible renewal for five more, if the parties agree. FonSai bought the 51% stake for EUR104.4m.Country: ItalySector: Insurance; Banking/Financial servicesTarget: Bipiemme VitaBuyer: Banca Popolare di Milano ScarlVendor: Fondiaria SAI SpADeal size in USD: 181.1mType: Corporate acquisitionStatus: Speculation((Comments on this story may be sent to [email protected]))