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Paschi Advances 52% This Week as Board Reaffirms Capital Plan

  • Lender’s board set to approve new business plan on Oct. 24
  • Bank continues with recapitalization, disposals of bad loans

Banca Monte dei Paschi di Siena SpA extended gains in Milan trading, bringing the share’s advance to about 52 percent this week, after the Italian lender said it’s pressing ahead with a plan to bolster capital and sell soured loans.

The shares jumped as much as 15 percent and were up 9.2 percent to 26 cents at 10:10 a.m. They extended gains for a second straight week, paring losses this year to about 78 percent. Monte Paschi’s board said late Tuesday that it’s conducting an in-depth analysis of a business plan that will be approved on Oct. 24, while pushing ahead with a recapitalization of the ailing lender and disposals of non-performing loans.