Banco Popolare Societa Cooperativa : Shares in Italy's 'popolari' banks up after govt approves reform

MILAN (Reuters) - Shares in several Italian cooperative banks rose strongly on Wednesday after the government approved an emergency decree that forces the largest 'popolari' to change their governance rules and become joint stock companies within the next 18 months.

Analysts says the changes will speed up an expected new consolidation wave in the sector, and could attract investors as the cooperative banks will be forced to drop rules giving every shareholder one vote regardless of the size of the stake.

By 0819 GMT shares in Credito Valtellinese (>> Banca Piccolo Credito Valtellinese Sc) rose more than 6 percent, Banco Popolare (>> Banco Popolare Societa Cooperativa), Popolare Milano (>> Banca Popolare di Milano) and Popolare Emilia (>> Banca Popolare dell'Emilia Romagna Sc) were up more than 5 percent. Shares in Popolare Etruria (>> Banca Popolare dell Etruria e del Lzi Sc), which has long been looking for a merger with a stronger rival, rose 9 percent.

The decree, which has many political opponents, must be approved by parliament within 60 days.

(Reporting by Valentina Za, editing by Francesca Landini)

Stocks treated in this article : Banca Popolare di Milano, Banca Piccolo Credito Valtellinese Sc, Banca Popolare dell'Emilia Romagna Sc, Banca Popolare di Sondrio ScpA, UBI Banca Scpa, Banca Popolare dell Etruria e del Lzi Sc, Banco Popolare Societa Cooperativa