Home Stock & Shares After shareholders approve cash call, Monte dei Paschi shares fall

After shareholders approve cash call, Monte dei Paschi shares fall

by Jonathan Adams

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.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more