Monte Paschi Seeks ECB Reprieve as It Tries to Avoid Bailout
- Lender struggles to attract investors after referendum
- Firm requests deadline extended from year-end to Jan. 20
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Banca Monte dei Paschi di Siena SpA asked the European Central Bank for more time to put together a 5 billion-euro ($5.4 billion) capital increase it needs to avoid a state bailout that would impose losses on shareholders and bondholders.
Monte Paschi’s board asked the ECB to extend the deadline from the end of the year to Jan. 20 “due to the changed reference context,” the Siena-based bank said in a statement late Wednesday. The ECB’s supervisory board is likely to discuss the request when it meets starting on Thursday afternoon, two people with knowledge of the matter said.