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.
