Italy is in talks with European Union regulators on new restructuring goals for Monte Dei Paschi di Siena (MPS) and the divesture of the state-backed bank to a private player.
Two unnamed sources told Reuters that the Italian government is getting close to reaching an agreement with the EU regulators.
Go deeper with GlobalData
In October 2021, the Italian government tried to sell MPS to a bigger player UniCredit.
The talks failed and Italy was forced to seek an extension of the deadline, which was 2021-end, to sell the embattled bank.
The Italian government bailed out MPS in 2017 and acquired a 64% stake in the bank.
The lender has failed to meet restructuring commitments, which Rome had agreed to with the EU to clear the rescue deal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAccording to sources aware of the discussions, Italy’s Treasury is close to securing a deal.
One of the sources said that Italy hopes to reach an informal agreement with the EU before MPS CEO Luigi Lovaglio presents a business plan for the bank next week.
Italy is seeking over a two-year extension to the deadline to sell MPS to a private bank, the source added.
Next week, the bank will also outline its plans to raise fresh capital to meet its cash needs.
As per the earlier plan, which is being reviewed by Lovaglio, who joined MPS in February 2022, the lender needs €2.5bn to bridge the capital gap.
