Deals
Paschi Drops Private Fund-Raising, Paving Way for State Rescue
- The world’s oldest bank failed to lure sufficient demand
- The Italian cabinet may meet as early as Thursday evening
Pedestrians pass a branch of Banca Monte dei Paschi di Siena SpA bank after the Italian vote on constitutional reform referendum in Rome, Italy, on Monday, Dec. 5, 2016.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Banca Monte dei Paschi di Siena SpA, the world’s oldest lender, abandoned plans to raise 5 billion euros ($5.2 billion) from the market, making a state rescue likely.
Monte Paschi failed to lure sufficient demand from investors in a share sale that ended Thursday, the Siena-based bank said in a statement after the market closed. The bank said it was scrapping the entire capital plan, including the sale of bad loans and the debt-for-equity swap, without elaborating on what it will do next.