Italian Bank Raises Offer for Irving Bank

Banca Commerciale Italiana SpA, Italy’s second-largest bank, on Monday raised its offer for a controlling interest in Irving Bank Corp. to $80 a share, or about $760 million.

The state-run bank said the latest bid, which seeks 51% of Irving’s 18.5 common shares outstanding, was conditional on Irving keeping intact the anti-takeover “poison pill” it adopted to thwart a hostile bid by Bank of New York Co.

Banca Commercial had offered $75 a share for the majority stake, or about $707 million.

Bank of New York spokesman Owen Brady said his company had no intention of raising its tender offer of $15 in cash and 1.575 shares of its own stock for each of Irving’s shares.

Bank of New York had proposed to slightly increase the stock portion of the $1.1-billion bid if, among other things, Irving agreed to hold friendly talks and dismantle its poison pill defense. But Irving’s board of directors unanimously rejected that proposal last week.

Brady blasted the Banca Commerciale condition for raising its offer as tilting the playing field. “This time we know they reserve the right to walk away whenever they like,” he said.