Monte Paschi Sale Could Cost Italian Taxpayers Another $6 Billion

  • Two sides could reach framework agreement in coming weeks
  • UniCredit requires capital neutrality to take part in deal
Photographer: Alessia Pierdomenico/Bloomberg
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Italy is in talks to inject at least 5 billion euros ($5.6 billion) into Banca Monte Paschi di Siena SpA ahead of a sale of the troubled lender to UniCredit SpA, according to people familiar with the matter.

The finance ministry, which controls Monte Paschi, is considering a cash infusion for the Tuscan bank through a rights offering that would allow minority shareholders to opt out of the increase, said the people, who asked not to be identified discussing the private deliberations.