Monte Dei Paschi CEO To Analyze Different Supply On Capital Boosting Plan
Deals Sat Oct 15, 2016 7:41pm BST
Monte dei Paschi CEO to research alternative offer on capital boosting plan
The entrance of the Monte dei Paschi bank headquarters is seen in Siena, central Italy, January 29, 2016. REUTERS/Max Rossi
MILAN Italy's Banca Monte dei Paschi di Siena () mentioned on Saturday it had obtained a non-binding proposal on Oct. 13 from former Industry Minister Corrado Passera presenting another plan to spice up the lender's capital.
On Friday, the financial institution's board instructed Chief Govt Marco Morelli to take care of the offer, Monte dei Paschi stated in an announcement, adding that Morelli had began an in-depth analysis of the proposal.
Two sources informed Reuters last week that the previous minister was working on a rescue plan proposal for the bank.
The bank is at present working to execute an bold turnaround plan primarily based on a 5 billion euro capital-boosting plan and the sale of 28 billion euros' value of unhealthy loans.
In accordance with two sources near the matter, the provide from Passera was short on details and did not point out any doable 'anchor' investor serious about injecting capital into the Tuscan financial institution.
One of many sources mentioned that Passera didn't ask for a management change at Monte dei Paschi and that the non-binding offer was based mostly on three measures to strengthen the bank's capital base.
First, it envisaged a reserved capital enhance for anchor buyers to boost 2.5 billion euros, the supply said.
On top of this, the supply talked about a 1 billion euro rights situation for Monte dei Paschi's present shareholders.
Lastly, 1.5 billion euros would come from the bank's retained earnings, the supply stated.
An preliminary idea of elevating capital by a debt-to-fairness conversion of Monte dei Paschi's subordinated debt seems to have been set aside in the intervening time.
Passera was not immediately obtainable for remark.
(Writing by Francesca Landini; Enhancing by Kevin Liffey and Hugh Lawson)
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