Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Time running out for Monte dei Paschi alternative rescue plan - source

Published 31/10/2016, 15:06
© Reuters. Man walks on a logo of the Monte Dei Paschi Di Siena bank in Rome
BMPS
-

ROME (Reuters) - An alternative rescue plan for Italy's Monte dei Paschi di Siena (MI:BMPS) sponsored by former industry Minister Corrado Passera will fall through if the Tuscan bank does not give access to its data by the end of the week, a source close to the matter said.

The source, who spoke on condition of anonymity as talks are private, said Passera had investors ready to invest 2 billion euros (£1.80 billion) in Italy's ailing third-largest lender.

Monte dei Paschi needs to raise 5 billion euros (£4.50 billion) in capital and spin off its bad loans by the end of the year to meet a request by the European Central Bank and avoid the risk of being wound down.

The source said Passera's proposal would no longer stand if investors he represented were not granted access to the bank's books right away since there would not be enough time to carry out a due diligence before a shareholder meeting on Nov. 24 called to approve the share issue.

Monte dei Paschi was not immediately available for a comment.

© Reuters. Man walks on a logo of the Monte Dei Paschi Di Siena bank in Rome

Monte dei Paschi in mid-October gave CEO Marco Morelli a mandate to analyse Passera's proposal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.