Stock up 2.33% (Il Sole 24 Ore Radiocor) - Milan , 16 Jul - Shares of the Italian online bank FinecoBank were higher in Milan trade, following a report it has been eyed as a possible investment by private equity firms interested in Italy's asset management sector.

At 0825 GMT, FinecoBank shares were up 2.33% to 15.60 euros, while the benchmark FTSE MIB index was down 0.76% at 34,114.89 points.

According to a report in the financial daily Il Sole 24 Ore, private equity firms Bain, CVC and Advent are studying possible investments in Italian asset management firms, and FinecoBank in particular. Meanwhile, shares of Banca Generali, the asset management arm of the Italian insurer Generali, were up 1.25% to 39.00 euros as Il Sole 24 Ore indicated that PE firms are also beginning to eye Banca Generali.

"Overall, in light of the derating of the sector and the gradually improving momentum, we evaluate positively the growing speculative appeal of some domestic operators," said analysts at the broker Equita. "On the other hand, in light of the complexity tied to the banking license and ECB oversight, we believe it is more likely that this interest can concretely show itself on the part of industrial, rather than financial operators." "Interest for the sector isn't new and confirms the attractiveness of the Italian wealth management sector that, despite commissions above the average level of other countries, has show high resilience and the ability to grow and generation cash," said analysts at Intermonte.

Intermonte also noted that many Italian companies in the wealth management sector also hold banking licenses, and regulators do not view positively ownership on the part of private equity firms, also given recent problems with the private-equity owned insurer Eurovita. "At the same time, eventual transactions would need to be agreed with management and key personnel of the sales network, which represent an important part of the value of these companies.".

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(RADIOCOR) 16-07-24 10:34:25 (0237) 5 NNNN