Monte Paschi to Start Share Sale in Effort to Avert State Rescue
- Paschi stock sale to end Dec. 22 for institutional investors
- Price, total shares said to be detemined by investor demand
Pedestrians pass a Banca Monte dei Paschi di Siena SpA bank branch in Rome, Italy, on Wednesday, Jan. 27, 2016. Italy's banking woes are set to plague Prime Minister Matteo Renzi for months to come after a long-sought deal with the European Union on bad debts disappointed investors.
Photographer: Alessia Pierdomenico/BloombergBanca Monte dei Paschi di Siena SpA will begin taking orders for shares Monday as it aims to complete raising 5 billion euros ($5.2 billion) by the end of the year to avoid a rescue by the Italian government.
Monte Paschi will sell stock to institutional investors through Thursday, while the offer for retail investors will end on Wednesday, the Siena, Italy-based bank said in a statement Sunday. The lender didn’t provide terms of the offer. The price and total number of shares to be sold will be determined based on investor demand and on the outcome of the separate debt-to-equity swap, people familiar with matter have said.