EU extends deadline for Italy to sell four rescued banks - Commission

European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, in this file picture taken October 28, 2015. REUTERS/Francois Lenoir/Files

BRUSSELS (Reuters) - The European Commission has agreed to extend the deadline for the sale of four small banks that Italy bailed out last year, saying on Friday that the extension was in line with EU state aid rules.

The initial deadline was set to expire at the end of this month. The Commission said it would not reveal the new deadline "in order to protect the effectiveness of the sale process".

A Bank of Italy official said earlier this week that 26 expressions of interest had been received from domestic and foreign investors for the four banks. He added that purchase offers were expected in a matter of days.

(Reporting by Francesco Guarascio; Writing by Crispian Balmer)