Reuters: Bankruptcy News: UPDATE 1-Fondiaria rescue stung by widening probe

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UPDATE 1-Fondiaria rescue stung by widening probe Apr 17th 2012, 15:16 Tue Apr 17, 2012 11:16am EDT * Prosecutors seeking bankruptcy of Ligresti holdings-sources * Unipol laid out conditions for Fondiaria rescue on Monday * Fondiaria, Premafin shares suspended limit up (Releads, adds background, shares) MILAN, April 17 (Reuters) - Italian prosecutors have widened a probe into the family group that controls troubled insurer Fondiaria-SAI, sources said on Tuesday, in a move that could complicate plans to rescue Fondiaria through a merger with peer Unipol. Milan prosecutor Luigi Orsi launched a probe last year into alleged market irregularities carried out by Salvatore Ligresti, the patriarch of the family controlling Fondiaria. Judicial sources said on Tuesday the prosecutors had now asked for bankruptcy proceedings to be opened against two holding companies of the Ligresti family, alleging possible charges of fraudulent bankruptcy. The sources said the prosecutors were investigating a hole of around 100 million euros ($130.62 million) in the accounts of holdings Sinergia and Imco, which together own around 20 percent of Fondiaria parent Premafin. Fondiaria-SAI was not immediately available for a comment. The escalating probe could cast a shadow over a complex deal brokered by Fondiaria's creditor banks Mediobanca and UniCredit to have Unipol save the debt-laden group through a four-way merger involving three capital hikes. On Monday Bologna-based Unipol laid down its conditions for pressing ahead with the rescue plan, saying it wanted to own 66.7 percent of the new merged group that would become Italy's No. 2 insurer. Unipol also set a maximum price of 0.195 euros per share for Premafin's capital increase but the two sides have yet to agree share swap ratios for the overall deal. At 1410 GMT Fondiaria SAI shares were suspended, indicated up 21 percent at 1.005 euros, while Premafin shares were suspended indicated up 9.5 percent. ($1 = 0.7656 euros) (Reporting By Manuela D'Alessandro. Writing by Stephen Jewkes; Editing by David Cowell) Link this Share this Digg this Email Reprints

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