It looks likely the world’s oldest bank will be nationalised:
Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro ($5.2 billion) capital increase, leading to what would be the country’s biggest bank nationalization in decades, said people with knowledge of the matter.
The Italian cabinet may meet as early as Thursday evening to approve a bank decree that will include measures to cover any funds missing in Monte Paschi’s recapitalization, a senior official said, asking not to be identified before the decree is presented to cabinet.
No anchor investor has shown interest in the stock sale, the Siena-based company said in a statement late Wednesday. Two debt-for-equity swap offers will raise about 2 billion euros, with investors converting bonds for about 2.5 billion euros, the lender said. The interest is probably insufficient to pull the deal off, said the people, who asked not to be identified before a final assessment.
“Nationalization after five years of restructuring, two state bailouts and 8 billion euros of wasted private funds is at the very least a missed opportunity, if not an outright failure of both the private and public sector,” said Fabrizio Bernardi, an analyst at Fidentiis Equities.
End of quote.
I wonder which snowflake will trigger the global financial avalanche?
Richard
Check out the extraordinary new, life-changing technology at www.magravsplasmaproducts.com
Recent Comments