March 29 (Reuters) - * Talks with government focused on terms of Unicredit’s underwriting agreement and possible use of a material adverse change clause by the bank -FT, citing sources * Unicredit in talks with Rome government about seeking support for 2 billion Euros capital raising at mutual bank Popolare di Vicenza- FT, citing sources Source text: (bit.ly/1ZJ17ln) (Bengaluru Newsroom +91 80 6749-1130; within U.S. +1 646 223 8780)
UniCredit is in talks with the government of Rome to seek support for a €2bn capital raising at mutual bank Popolare di Vicenza, a deal which is viewed as a critical test of investor confidence in Italy's banks. The Italian banking sector has been hit by bad loans and rising interest rates since Silvio Berlusconi was forced from office last year.