Bankers Pull Bond Sale for Buyout of Italian Firm After Arrests

Bankers pulled the plug on a 640-million euro ($718 million) bond to finance the buyout of an Italian technology firm after the company disclosed that it is under investigation by local authorities, according to several people familiar with the matter.

BNP Paribas SA, Credit Suisse Group AG, Banca IMI of Intesa Sanpaolo SpA and others arranging the bond sale told investors on Friday that Engineering Ingegneria Informatica SpA won’t proceed with the offering, citing recent developments disclosed in updated bond documents and price expectations.

Private equity firms Bain Capital and Neuberger Berman Renaissance Partners, which approached the bond market via ...