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Monopoly-Italy UniCredit to stop negotiations over Monte dei Paschi-Source

File photo: Banca Monte dei Paschi headquarters in Siena, Italy, October 27, 2017. REUTERS / StefanoRellandini / File Photo

October 23, 2021

London (Reuters) -The Italian government and UniCredit are preparing to suspend negotiations on the sick bank Monte dei Paschi (MPS) after unsuccessful efforts to reach an agreement on a costly capital increase plan2 One source told Reuters.

Rome has determined that it cannot meet UniCredit’s demand for a recapitalization package worth more than € 7 billion. This is because it is a “too punitive” transaction for Italian taxpayers. Disagreements over the scale and cost of headcount reductions at the world’s oldest banks, and accountability issues regarding how UniCredit calculates fair value adjustments for MPS debt, proved to be the main obstacles. This source says.

According to a second source, it is impossible to reach an agreement under the terms set in July, in order to boost UniCredit’s earnings per share by 10% and not impact its capital. I had to get the “Selected Parts” of Monte dei Paschi. ..

UniCredit declined to comment, but the Treasury was unable to get immediate comment.

(Reported by Pamela Barbaglia in London, Valentina Za in Milan, Giuseppe Fonte in Rome)



Monopoly-Italy UniCredit to stop negotiations over Monte dei Paschi-Source

Source link Monopoly-Italy UniCredit to stop negotiations over Monte dei Paschi-Source

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