Italy Ex-Cenbank Head`s Trial Starts

The former head of the Bank of Italy went on trial on Thursday on charges relating to a 2005 takeover scandal but the trial was suspended for a month to hear a motion to broaden the proceedings.

Antonio Fazio, central bank chief from 1993 to December 2005, and 17 other suspects face charges stemming from a battle by Dutch bank ABN AMRO to take over Italy's Banca Antonveneta. He did not appear in court on Thursday.

Prosecutors allege Fazio, 72, backed a rival bid by Banca Popolare Italiana (BPI). He resigned from the central bank, while denying any wrongdoing.

Fazio is accused of market-rigging. The other suspects group individuals and companies who face charges of conspiracy, market-rigging, insider trading and obstructing oversight, among others.

The trial in a Milan court was suspended to Nov. 20 shortly after it started to hear a motion by the Adusbef consumers association. The group is seeking to include the central bank and the Consob bourse regulator in the trial as civil defendants.

Adusbef is asking for 10 million euros ($12.83 million) in damages for what it says was lack of oversight and to become a civil plaintiff.

BPI lost out to ABN AMRO in the fight over Antonveneta.

The other defendants include Luigi Zunino, founder of real estate company Risanamento <RN.MI>, and the central bank's former surveillance chief Francesco Frasca. They have rejected the charges.

Another 64 people or companies accused in the case have entered plea-bargain agreements, including former BPI Chief Executive Gianpiero Fiorani.

The list of witnesses submitted by prosecutors include Bank of Italy Governor Mario Draghi, Consob Chairman Lamberto Cardia, investor Gilberto Benetton, and Cesare Geronzi, now chairman of leading investment bank Mediobanca