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Monte Paschi Presses With Capital Plan as Rescue Clock Ticks

  • Bank said to seek more retail investors to participate in swap
  • Government’s backup plan would impose losses on bondholders
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Monte Paschi Proceeds With Capital Plan

Banca Monte dei Paschi di Siena SpA is making a last-ditch effort to raise funds as the prospect of a state rescue looms.

After regulators rebuffed its request for an extension, the world’s oldest bank said it will press ahead with a plan to raise 5 billion euros ($5.3 billion) from investors in the next 19 days. As the odds of attracting fresh investment lengthened, the chance of a government bailout that will impose losses on bondholders grew.