Italy's Banca Popolare di Lodi (Bipielle) is to join forces with the investment banking operation of Banco Santander Central Hispano (BSCH) to create a mutually-owned Italian securities house.

The two banks have signed a letter of intent to found the new company into which Bipielle intends to put all its broking activities. It will be used to manufacture a wide range of services and products including securities and structured products that can be sold through the bank's distribution channels.