(Alliance News) - BFF Bank is evaluating potential extraordinary transactions, including M&A, and has mandated Mediobanca and Morgan Stanley to analyze strategic options following the issues raised by Bank of Italy audits, Milano Finanza reported on Tuesday.
While no formal negotiations are currently underway, potential suitors could include specialized finance players or emerging entities such as Cherry Bank, whereas private equity involvement appears less likely.
The situation remains in a preliminary phase, pending further clarity on the impact of the inspections on the 2025 accounts. Such clarity is expected as early as today, MF writes, when the BFF board will 'lift the veil on the final cleanup requested at the end of March by the Supervisory Authority'.
The bank's troubles date back to 2024 and have intensified with new findings regarding internal controls and factoring accounting, leading to the appointment of two commissioners to work alongside the board. The audits could reveal up to EUR1.3 billion in problematic loans.
To bolster its financial structure, the group led by Giuseppe Sica is considering a major securitization of up to EUR1 billion in assets with JPMorgan, in an effort to avoid a capital increase.
Meanwhile, according to the Supervisory Authority, the bank's operations are continuing as normal.
By Chiara Bruschi, Alliance News reporter
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