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Paschi Falls as Buyers Said to Balk, Making State Aid Likely

  • Paschi says no anchor investor has showed interest so far
  • Debt-for-equity swap raises about 2 billion euros for the bank
Bloomberg business news

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Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro ($5.2 billion) capital raise, said people with knowledge of the matter, making a state rescue likely.

No anchor investor has shown interest in the recapitalization so far, the Siena-based company said in a statement late Wednesday after a board meeting. Two debt-for-equity swap offers will raise about 2 billion euros, with investors converting bonds for about 2.5 billion euros, the lender said.