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Analysis & opinionDecember 1 2004

Dexia and Sanpaolo IMI talks may signal defensive alliance

Belgian bank Dexia and Italian bank Sanpaolo IMI are holding talks, possibly about a merger or a joint venture, according to reports leaked as The Banker went to press.
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However, analysts believe it is difficult to find strategic value in any operation the two banks may be considering.

Italy has been out of bounds for acquisitive foreign banks in recent years. Antonio Fazio, the governor of Italy’s central bank, is keen on domestic consolidation to create at least two financial champions of a reasonable size on the European stage.

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