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Stock & Shares

After shareholders approve cash call, Monte dei Paschi shares fall

Monte dei Paschi

Shares in Monte dei Paschi di Siena (BMPS.MI) fell 5.5 per cent on Friday, and were temporarily halted from trading, after shareholders in the Italian bank approved a 5 billion euros (£4.25 billion) recapitalisation plan needed to keep it afloat.

Monte dei Paschi managed to gather shareholders representing 22.4 per cent of its capital at the meeting, just above a required 20 per cent quorum, and the plan got 96 per cent of votes.

Italy’s third-largest bank aims to launch on Monday a debt-to-equity conversion offer that seeks to reduce the size of the proposed share sale.

CEO Marco Morelli said on Thursday Monte dei Paschi could launch the stock offer around Dec. 7 or 8, a few days after a crucial Dec. 4 referendum vote on a constitutional reform that may lead to resignation of Italy’s government.

Paul

The author Paul