Back
Register for SMS Alerts
or enter your details manually below...
First Name:
Last Name:
Email:
Password:
Hometown:
Birthday:
Sorry, we couldn't find that email.
Existing users
Email
Password
Sorry, we couldn't find those details.
Enter Email
Sorry, we couldn't find that email.

Monte dei Paschi to launch share issue this week

In a bid to raise €5 billion and avoid a state bailout, Italian bank Monte dei Paschi di Siena says it will launch a share issue between Monday and Thursday

18 December 2016, 11:40am
Italy’s oldest bank is the country's third-largest
Italy’s oldest bank is the country's third-largest
Troubled Italian bank Monte dei Paschi di Siena said it would offer new shares between Monday and Thursday in a last ditch attempt to raise €5 billion in capital this year and avoid a state bailout.

Monte dei Paschi said its share offer for institutional investors, which accounts for 65% of the total, would run until 1pm GMT on Thursday.

The offer reserved for current shareholders and retail investors will end instead at 1pm GMT on Wednesday.

In a bid to raise funds, Monte dei Paschi has also extended a voluntary debt-to-equity offer to retail investors owning €2.1 billion of its junior debt. The offer runs to 21 December.

Italy is ready to step in to rescue the country’s third-largest bank should the fundraising plan fail.

Under new rules Europe introduced in the wake of the financial crisis to shield taxpayers, investors in a failing lender must bear losses before public money can be tapped.

A source familiar with the matter said on Friday a state bailout of Monte dei Paschi would entail a forced conversion of €4.1 billion worth of subordinated bonds into shares.

DealToday
Latest Business News
Business News 21-10
From Rome to Malta, via Panama and Dubai: the Vatican bank claims its financial advisors and their Maltese firms used its millions to make a...
Business News 20-10
Banif Bank has rebranded into BNF Bank as it rolled out its new brand identity and divulged plans to expand into asset management and invest...
Business Comment 20-10
Correcting markets, Goldman’s contingency plans & Spain toughening up on Catalonia
Law Report 20-10
A plea claiming that an action is time barred, may be cancelled if one pleads that the claim itself is overstated
Business Comment 19-10
Earnings driving markets, Snapchat presenting next Winter Olympics and good times for IBM