Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

MPS shares suspended on cash hike proposal

Share this article

MPS shares suspended on cash hike proposal
Monte de Paschi de Siena said it was considering a capital hike after failing a financial health check by the European Central Bank. Photo: Fabio Muzzi/AFP
08:15 CET+01:00
UPDATED: Shares in Banca Monte dei Paschi di Siena were suspended for excessive losses on Monday after Italy's third biggest bank said it was considering a capital hike.

The bank's shares were suspended just after Milan's FTSE Mib opened, after dropping 2.71 percent.

The bank had said on Sunday it was considering a capital hike after failing a stress test by the European Central Bank, but that state aid was not being considered.

The bank said it is in discussions with authorities over the planned hike and that it is examining the option of covering "the entire capital shortfall through a capital increase".

Other options it is considering include the sale of certain assets to improve its finances, it said.

The bank's directors are due to discuss these plans on Wednesday before announcing its decision on November 10.

Monte dei Paschi de Siena, Italy's third biggest by the number of branches, was among a handful of financial institutions that failed the ECB's audit published last week.

The financial health check, the most comprehensive and most stringent of eurozone banks, is aimed at preventing a repeat of the crisis that nearly led to the euro's collapse.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The Swedish university tackling the challenges of tomorrow

Ranked among the world's best young universities in the QS Top 50 Under 50, Linköping University (LiU) uses innovative learning techniques that prepare its students to tackle the challenges of tomorrow.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement