Intesa Sanpaolo S.p.A. (BIT:ISP) is in talks to sell €2.5 billion in bad loans to Christofferson, Robb & Company, LLC and Bayview Asset Management, LLC, three sources close to the matter said. The sources said Intesa had not yet entered into an exclusivity agreement with Christofferson, which may give other bidders a chance to re-enter the game. Two consortia comprising Apollo Global Management, LLC (NYSE:APO) with Credito Fondiario S.p.A. on one side and Cerberus Capital Management, L.P. with Cerved Information Solutions S.p.A. on the other were also in the running for the sale, dubbed "Beyond the clouds".

A second source said binding bids for this €1.35 billion portfolio, dubbed "Project Rep", were due by May 19. The first source said around a dozen international investors had shown an interest as they bet on a recovery in the Italian property market. Bidders are expected to include Fortress Investment Group LLC, Apollo, Cerberus Capital Management, L.P., PIMCO with GWM Capital Advisors LLP, Starwood Capital Group with TPG Capital, L.P. All the interested parties declined to comment.