Paschi Bondholders to Be Shielded in UniCredit Takeover
- UniCredit said last week it’s in talks to Buy Monte Paschi
- Treasury, UniCredit mulling ways to protect bonds from losses
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Banca Monte dei Paschi di Siena SpA’s bondholders are expected to be shielded from any losses in the event of a takeover by UniCredit SpA, according to people familiar with the matter.
UniCredit and the Italian Treasury are looking at options to protect holders of Paschi debt from losses if the deal is finalized, including the possibility for Italy’s second-biggest bank to assume the liabilities of junior bonds, said the people, who asked not to be identified because the matter is private.