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Banca MPS collapses a few days after the start of a capital increase that encounters numerous setbacks. Here are the latest news.
In Piazza Affari there are no signs of subsiding on the sales on Banca Monte Paschi which continues to remain in the grip of the bears.
MPS bank hit by a strong sell-off
After closing yesterday with a drop of almost a point and a half percentage, today the title tried to get back on top, in line with what happened on the eve, only to change direction.
In the last few minutes, Banca Monte Paschi shows up at € 22.165, with a sinking of 6.32% and almost 60 thousand shares changed hands so far, against the average of the last 30 days of about 82 thousand.
The shares of the Sienese bank collapsed a few days from the date on which the capital increase of 2.5 billion euros should theoretically start.
Banca MPS: new rumors about the increase. The operation slipped?
The road still appears uphill and according to what Milano Finanza writes, the market is not at all willing to subscribe to a recapitalization equal to 8 times the current value of the Sienese bank.
The financial newspaper reminded that there is time until 12 October, given that by that date the Treasury, as the first shareholder of Banca Monte Paschi, and the protagonists of the guarantee consortium, must decide whether and how to start the increase in capital, whose contours still appear very smoky.
Yesterday, meetings were held in Rome between the MEF, the CEO of Banca MPS, Lovaglio, and the representatives of the consortium banks, who expressed doubts about the granting of the guarantee on the entire unopted increase, for today seen in the area of 600 million euros according to rumors.
According to some press articles, these interlocutions could lead to a revision of the roadmap of the operation, which today provides for the start of the increase for October 17 and closing in mid-November, with the hypothesis of a spin-off of the capital strengthening operation into two tranches.
Banca MPS: no white knight?
According to what was reported by Milano Finanza, the hypothesis of system intervention by the main Italian financial institutions seems to cool, which therefore would hardly act as anchor investors alongside Axa and Anima.
It should be noted that the latter is still in negotiations for the revision of the distribution agreement, a necessary condition for intervening in the capital of Banca Monte Paschi.
Banca MPS focuses on hedge funds
Instead of a system intervention, support could be provided by the funds holding the subordinated securities.
The valuations of these securities currently discount the hypothesis of an involvement in the capital increase with a conversion and / or devaluation of approximately 40-45% of the securities themselves, which represents an amount of just under € 900 million that the bank should collect from the market.