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UniCredit Group sells B&C profit participation rights to B&C Holding

Italy-based bank UniCredit Group has spun out its private equity-style investment foundation of Austrian industrial companies for EUR1.1bn (USD1.55bn) to free up its capital.

Italy-based bank UniCredit Group has spun out its private equity-style investment foundation of Austrian industrial companies for EUR1.1bn (USD1.55bn) to free up its capital.

UniCredit Group has reached an agreement with B&C Privatstiftung regarding the sale of the profit participation rights held by Bank Austria in B&C Holding, the industrial participations holding controlled by B&C Privatstiftung which holds its voting rights.

B&C Privatstiftung, a private foundation under Austrian law, was created by Bank Austria in 2000 at the time of the integration between Bank Austria e Bayerische Hypo und Vereinsbank AG, with the main goal to split the banking from the industrial business.

At the time Bank Austria had transferred its equity interests in industrial companies to B&C Holding, receiving the profit participation rights in exchange.

The sale price will be around EUR1.1bn and will result in a capital gain after tax, at UniCredit Group consolidated level, of around EUR155m, to be booked by the end of 2008.

Bank Austria will have the right to receive from B&C Holding an additional potential deferred payment (not included in the above transaction consideration or estimated capital gain) depending on the future financial performance of Lenzing and Semperit, two industrial companies controlled by B&C Holding.

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