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Monte Paschi Seeks Investors as CEO Eyes $5.4 Billion in Capital

  • Bank starting talks with core investors on Tuesday, CEO says
  • Lender targeting annual profit of 1.1 billion euros in 2019
Bloomberg business news

Morelli Seeks to Put Paschi Back on Profitability Track

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Banca Monte dei Paschi di Siena SpA signaled it’s just starting talks to draw investors to a stock sale, reigniting concerns that the lender may struggle to secure its survival through private funds.

Three months after unveiling plans to cut soured loans, the Siena, Italy-based lender said on Tuesday that it’s seeking to hold talks with investors to win support for 5 billion euros ($5.4 billion) in fresh capital by the end of the year. As part of his overhaul, Chief Executive Officer Marco Morelli pledged to return Monte Paschi to profit, targeting net income of 1.1 billion euros in 2019.