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. Italy's lenders have lost around a quarter of their value since the beginning of the year due to concerns over their bloated exposure to €360bn of gross non-performing loans, equivalent to around a fifth of GDP.