The Monte dei Paschi di Siena Foundation, which owns 45% stake in the bank said that it will consider a plan to sell a large stake in order to raise money to repay debt.
After selling the proposed 15% in the market, the foundation will remain largest share holders in Monte dei Paschi and, it will provide veto power to alleviate any takeover move under Italian law.
The firm said that it will not dispose its stake to the open market players; rather it will place ‘in due course’ with ‘strategic partners’ such as groups of Italian entrepreneurs, which will need to be approved by the Italian Treasury and the banking regulator.
Amid growing pressure form European banking regulators to increase its capital by €3.2bn, as much as its market capitalization, the foundation has decided to sell some stakes in one of Europe’s weaker banks.
The glooming situation is prevailing ahead as the creditors, which comprise a syndicate of 13 banks led by Credit Suisse and JPMorgan are pressing the bank to repay their debt.
Unable to get the fund form another sources, the foundation expects that it will accumulate nearly $400m by selling 15% stake, and it would be able to pay its creditor bank and this will pave the way for it to restructure the rest of its debt.
