MPS: 5 days for €5 bn capital increase

Monte dei Paschi di Siena has until next Thursday to raise private capital. The government, which has already scheduled a meeting for Thursday December 22, could be able to open a public parachute before holiday break. Yesterday, as Consob was preparing to clear the prospectus of the recapitalization and the bond-to-equity swap (the ok came around midnight), the board of the bank approved the €5 billion capital increase.

Shares will be issued at a maximum price of 24.9 euros and a minimum of 1 euro, the bank said in a statement. Of these, 35% will be available to the Italian public – of which at least 30% reserved for current shareholders – with 65% reserved for institutional investors.  

A solution for the bank's recapitalization must come before the end of the year, as requested by the European Central Bank (ECB).