Italy Nears Deal to Split Up Monte Paschi
- Deal to transfer assets to UniCredit in return for state stake
- Size of capital need for Monte Paschi rump bank still open
Banca Monte dei Paschi di Siena SpA bank headquarters in Siena, Italy.
Photographer: Alessia Pierdomenico/BloombergThe Italian government is closing in on a deal to sell part of the troubled Banca Monte Paschi di Siena SpA to UniCredit SpA, with a state-backed rights offer to pave the way for the transaction likely to exceed the 3 billion euros ($3.5 billion) initially estimated, according to people familiar with the matter.
Talks between the finance ministry, which controls Monte Paschi, and the Milan-based UniCredit led by Chief Executive Officer Andrea Orcel remain focused on a specific subset of profitable assets which would include about 4 million clients and business activities mainly in central and Northern Italy, the people said, asking not to be named as the discussions are private.