BPM studying options for asset management ops, decision likely this year UPDATE

        (Adds comments on covered bond issue in Q2-Q3)
    MILAN (Thomson Financial) - Banca Popolare di Milano managing director
Fabrizio Viola said the bank is studying several options to enhance the value of
its asset management operations and that a decision will likely be taken this
year.
    "I'm reasonably certain that BPM will address the reorganisation of asset
management in 2008. There are several options but at present no decision has yet
been taken," he said in a conference call.
    Viola said the aim of the reorganisation will be of "generating value in
terms of revenue and cost economies as well as of balance sheet value".
    In other comments, he confirmed that the deadline to finalise talks between
a BPM-led consortium and UniCredit to acquire 186 branches has been postponed by
one month.
    A company official said the postponement has been decided to "fine tune
technical aspects" and that the sale will be defined around mid-April.
    Asked about possible further writedowns on the stake in fund manager Anima,
Viola said the stake's balance sheet value is based on the expected level of
cash flow and that its market price has limited impact.
    He added the stake in Anima is a strategic one.
    Financial director Enzo Chiesa said BPM has mandated UBS and HSBC to launch
the bank's first covered bond issue, which is expected to take place in the
second or third quarter of this year.
    He said the programme concerns 5 bln eur bond issues with five year
maturities.
danilo.masoni@thomson.com
dm/lht//cmr/dm/lam/dm/jfr

COPYRIGHT

Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.