U.S. investment firm Cartica Management LLC will drop further legal action challenging a merger between Brazil's Ita� Unibanco Holding SA and Chile's CorpBanca SA after efforts to block the deal were dismissed in Chilean and American courts, a senior executive said on Monday. Cartica will drop a plan to appeal a September ruling by a court in the Southern District of New York dismissing a complaint over poor disclosure of terms in the Ita�-CorpBanca deal, said Mike Lubrano, a managing director at the Washington D.C.-based firm.Cartica had argued since March that CorpBanca controlling shareholder Alvaro Saieh and Ita� negotiated "inequitable special benefits" for the billionaire financier and his CorpGroup holding company. Cartica will continue to oppose those benefits and press Ita� to remove some of them, Lubrano said."We will focus on the post-merger corporate governance arrangement," Lubrano said in a phone interview. "We are ceasing any legal action" against the merger, he added.Cartica's decision came just a few days after the International Finance Corp, the World Bank's investment banking arm known as the IFC, agreed to endorse the Ita�-CorpBanca merger, giving a huge boost to the largest Latin American banking tie-up since 2008.
CorpBanca is a Chile-based bank engaged in the provision of commercial and retail banking services. Shares of BCA fell by 3.03% or $-0.54/share to $17.29. In the past year, the shares have traded as low as $15.76 and as high as $22.30. On average, 58494 shares of BCA exchange hands on a given day and today's volume is recorded at 32519.
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