Sunday 22 October 2017

Oldest bank seeks state aid to lure investors

Sonia Sirletti

Banca Monte dei Paschi di Siena, the bailed-out bank embroiled in a fraud probe, may approve tougher cost-cutting measures to win European regulators' support for state aid and attract new investors.

Undisclosed losses from financings carried out in previous years forced chief executive Fabrizio Viola (55) and chairman Alessandro Profumo (56) to seek additional state aid and prompted demands from regulators for a deeper reorganisation of the world's oldest bank.

The pair, appointed last year to turn the company around, must convince investors they can meet the goal, which includes luring buyers to a €2.5bn stock sale over the next year, an amount that's similar to Paschi's current market value.

Irish Independent

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