VERONA (Reuters) - Shareholders in Italian mid-tier bank Banco Popolare (>> Banco Popolare Societa Cooperativa) approved on Saturday a 1-billion euro (£790.3 million) capital increase that is part of a planned merger deal with fellow cooperative lender Popolare di Milano (>> Banca Popolare di Milano).

The bank's chief executive, Pier Francesco Saviotti, told reporters the bank expected to complete the cash call by the end of June. The fund raising is a condition set by the European Central Bank for approving the merger, which would create Italy's third biggest bank.

(Reporting by Andrea Mandala, writing by Silvia Aloisi)