Italy’s UniCredit settles dispute with Caius

Unicredit bank logo is seen in the old city centre of Siena, Italy June 29, 2017. REUTERS/Stefano Rellandini

MILAN (Reuters) – UniCredit (CRDI.MI) and British hedge fund Caius have settled a dispute over complex financial instruments which count toward Italy’s biggest bank’s capital, the two companies said.

Caius had taken aim at UniCredit’s CASHES securities, which the bank issued in 2008, arguing they should not be classed as core capital. UniCredit, in turn, had filed a lawsuit against the firm seeking 90 million euros ($102 million) in damages.

CASHES are convertible and subordinated hybrid equity-linked securities.

Reporting by Valentina Za; Editing by Adrian Croft

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