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MPS stocks plunge, then rebound after share sale delayed

Investors weary over 3-bn-euro capital increase postponed

30 December, 10:34
MPS stocks plunge, then rebound after share sale delayed (ANSA) - Milan, December 30 - Troubled Italian bank Monte dei Paschi di Siena (MPS) lost 5.8% at the open of the Milan bourse Monday before recuperating much of the damage, following news at the weekend that it was forced to delay a crucial three-billion-euro share sale until May due to shareholder opposition. Shares were selling at 0.17 euros, down 1.39% shortly after the start of trading on the week. Investors were spooked by uncertainty surrounding a turnaround plan for MPS, Italy's third-largest and the world's oldest. MPS management had argued strongly to complete the cash call in January.

If it fails to generate enough capital to repay State aid, the bank risks nationalization.

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