Monte dei Paschi Discloses Proposals From Corrado Passera, UBS
July 28 2016 - 6:20PM
Dow Jones News
MILAN—Banca Monte dei Paschi di Siena SpA said late Thursday
that it has received letters from Corrado Passera, a prominent
former bank executive and government minister in Italy, and from
Swiss bank UBS AG with proposals for the bank.
In its statement, the Siena, Italy-based bank provided no
further details on the two letters, which it said are being
examined by the bank's board. The bank said the board has asked for
more information regarding the proposals. The bank's directors are
scheduled to meet Friday afternoon to approve the bank's first-half
earnings.
Corrado Passera was the chief executive of Intesa Sanpaolo SpA
for a number of years until 2011, when he joined the government of
Prime Minister Mario Monti. He has also served as managing director
of Italy's postal service.
Monte dei Paschi is seeking approval from the European Central
Bank for a plan that will relaunch the troubled lender, which is
suffering from poor profitability and is struggling to manage
nearly €50 billion in bad loans. It is hoping its plan—which
involves shedding €10 billion in bad loans and launching a capital
increase of up to €5 billion—will secure approval before Friday
evening, when European authorities will release the results of
so-called stress tests.
Monte dei Paschi is expected to emerge as the worst performer in
Europe in those tests.
A spokesman for the bank declined to elaborate on the nature of
the proposals from Mr. Passera and from UBS. A spokeswoman for UBS
wasn't available for a comment, nor was Mr. Passera.
Write to Deborah Ball at deborah.ball@wsj.com
(END) Dow Jones Newswires
July 28, 2016 18:05 ET (22:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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