Déjà vu

23 September 2020 By Lisa Jucca Follow @LJucca

Rome wants to wedge ailing Monte Paschi into Italy’s No. 2 bank, whose CEO, Jean Pierre Mustier, has resisted political urges to merge. Holding out for a deal as good, or better, than rival Intesa got in a similar bank rescue makes sense. Consider the financial goodies on offer.

This content is for Subscribers only

Context News

The Italian Treasury has asked UniCredit to buy its stake in Banca Monte dei Paschi di Siena, La Repubblica reported on Sept. 21. Chief Executive Jean Pierre Mustier said it would be ready to sit at a negotiating table if the bank could be adequately compensated for capital imbalances and legal risks from the acquisition, the Italian daily added.

The Italian Treasury owns 68% of Monte Paschi following a 2017 bailout.

The state must sell its holding next year to meet the terms of a bailout negotiated with the European Commission.

To attract buyers, Monte Paschi plans to offload 8.1 billion euros of impaired loans to state-owned bad-loan manager Amco, cutting the ratio of problem loans to 4% of total loans, from 12% currently.

Monte Paschi faces legal claims worth about 10 billion euros.

Email a friend

Please complete the form below.

Required fields *