Italians aiming to create £68bn bank

Italy’s UniCredit and Capitalia are expected tomorrow to announce a deal to create Europe’s biggest bank after HSBC, with a market value of about €100 billion (£68 billion). The banks’ respective boards are to meet separately to approve UniCredit’s approach, which analysts expect to be an all-share bid at little or no premium to Capitalia’s share price. It has risen about 15 per cent since contact between the banks was revealed last week.

UniCredit and Capitalia shares were suspended from trade yesterday in another sign that a deal was imminent. (Reuters)

Clear backs offer

The board of Clear Channel Communications, the US radio and advertising group, approved a buyout proposal of $39.20 a share, or $19.6 billion (£9.9 billion), from Bain Capital Partners and Thomas H Lee Partners, who raised their original $19.5 billion bid by 20 cents a share. The deal gives shareholders about 30 per cent of the restructured company. Clear Channel cancelled a vote scheduled for May 22 and will set a new date after filing a new proxy statement. (Reuters)

Qantas departure

James Packer, the executive chairman of Australia’s Publishing and Broadcasting Ltd (PBL), has become the second Qantas director to resign. It follows the decision by Margaret Jackson, the airline’s chairman, to leave the board at its annual meeting in November.

Separately Eddie McGuire, chief executive of the Nine television network, which is controlled by PBL, resigned yesterday after 18 months to focus on his career as a presenter. (Chris Johnston)

Russian resolution

Russia and the European Union agreed to resolve their remaining differences on Russia’s accession to the World Trade Organisation within the next few weeks, German Gref, the Russian Economy Minister, said. “We stated that there remain only two unresolved issues – export tariffs and railway fees – and we agreed to resolve them within the upcoming weeks,” Mr Gref said afer the Russia-EU summit in Volzhsky Utyos in southern Russia. (Reuters)

Reit’s Calcutta plan

Reit Asset Management, the privately owned UK property firm whose assets include St Katharine Docks in London, is to build nearly 5,000 flats on an old refugee colony near Calcutta. Reit has teamed up with Eden Realty Ventures, an Indian developer headed by Indrajit De. The project in Bonhooghly will result in the site’s existing 800 family residents each being given a flat and 1,000 rupees a month (£12.35) for two years’ temporary housing. (James Rossiter)

FTSE at best since September 2000

The FTSE 100 index gained almost 1 per cent yesterday to close at 6,640.90 points, its highest since September 2000. Continental markets also rose. The CAC 40 in Paris gained 1.23 per cent to 6,101.14, its highest since November 2000. In Frankfurt the Dax gained 1.44 per cent to 7,607.54.

BP motion denied

An Alaskan judge denied a motion by BP and Lord Browne of Madingley, the former chief executive, to dimiss a shareholder lawsuit over alleged mismanagement. Lawyers for Lord Browne had moved to dismiss because BP is a British company.

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