Sator, a private equity firm owned by Italian investment banker Matteo Arpe, is to take over the Milan-based Banca Profilo in a deal which includes a €110 million ($139 million) capital injection and a restructuring plan, the bank said.

Banca Profilo, which has a market capitalisation of about €52 million, reported a €74 million loss for 2008.

The bank will be restructured to focus on private banking, according to a statement. The capital increase will be in two tranches: one worth €30 million offered to all shareholders and another for up to €80 million, reserved to Sator. Both offers will be at €0.20 per share.

Mr Arpe, whose Roman banking group Capitalia was bought by Italian banking giant UniCredit in 2007, will take at least 51 per cent of Banca Profilo after the acquisition.

He launched Sator, of which he owns between 50 and 55 per cent, in 2007 after resigning as chief executive of Capitalia. Former Italian budget minister Professor Luigi Spaventa chairs the fund.

In May 2008, Sator launched Sator Active Value Fund, a European long-short equity fund. The launch of a real estate fund is expected to take place in the first half of 2009.