Published January 25, 2013
SIENA – Italy's Banca Monte dei Paschi di Siena said on Friday it had approved the sale of a significant number of non-strategic stakes to boost its capital.
Chief Executive Fabrizio Viola told a shareholder meeting proceeds from these sales would also help reimburse a state bailout. He did not say which holdings he was referring to.
As expected the special shareholder meeting in Siena approved two capital increases of up to 6.5 billion euros to be carried out if needed in the next five years, a condition of the 3.9 billion euro state bailout the bank requested last year.
The capital increases would allow the bank to issue shares to the Treasury if it cannot pay the interests on the bonds it is selling to the government as part of the scheme and if it cannot reimburse the loans.
(Reporting By Silvia Aloisi, editing by Antonella Ciancio)