Shares in Carige fail to trade after key cash call blocked

A pedestrian passes a Banca Carige SpA bank branch in Rome, Italy.
Alessia Pierdomenico | Bloomberg | Getty Images
A pedestrian passes a Banca Carige SpA bank branch in Rome, Italy.

Shares in Banca Carige failed to start trading at the open after the top investor in the troubled Italian lender put its future into question by blocking a key 400 million euro ($455 million) new share issue.

The cash call was part of a rescue financed by Italian lenders to prevent a banking crisis at a time when the industry is already struggling with higher funding costs and shrinking capital buffers due to the policies of Rome's anti-European government.

By 0807 GMT shares in Carige were indicated at 0.0014 euros down from 0.0016 euros on Friday. Italy's banking index lost 0.4 percent.