UniCredit S.p.A. (BIT:UCG) is in talks about taking direct control of its holding in Yapi ve Kredi Bankasi A.S. (IBSE:YKBNK), paving the way for a potential sale or reduction of its stake, people with knowledge of the matter said. UniCredit and Koç Holding A.S. (IBSE:KCHOL) are in discussions about reorganizing KOC Finansal Hizmetler A.S. which owns almost 82% in Yapi Kredi, two people said, asking not to be identified as the talks are private. UniCredit is interested in exiting the venture and taking direct control of its 41% stake, the people said, with one person adding that the UniCredit is considering a structure that would help free up capital.

Both companies are seeking to finalize the changes by the end of the year, allowing UniCredit to decide on the future of its holding in Yapi Kredi without needing to consult Koc, the people said. One option may be a secondary public offering of the stake, two of the people said. Talks haven't been finalized yet and there's no certainty they'll result in a transaction, the people said.

Representatives for UniCredit, Koc and Yapi Kredi declined to comment.