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ECB Rejects Monte Paschi Bid for More Time on Capital

  • Siena bank’s board to resume meeting on Sunday afternoon
  • Paschi said to consider reopening debt to equity swap
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What Comes Next for Monte Paschi?

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Banca Monte dei Paschi di Siena SpA is pressing ahead with its 5 billion euro ($5.3 billion) capital-raising plan even as Italy prepares a rescue package in case the troubled lender’s proposal doesn’t attract investors.

The European Central Bank decided on Friday not to allow the company to extend the deadline on the capital increase from the end of the year to Jan. 20, according to two people familiar with the talks. The bank’s board, which met today to weigh its options, said it’s proceeding with "activities to complete the capitalization plan" because it hasn’t received any communication from the ECB, according to a statement from the Siena-based company. Monte Paschi adjourned the meeting to Dec. 11.