Profumo says MPS will raise 3-bn euros of capital in May

IMG class=hide alt=”Profumo says MPS will raise 3-bn euros of capital in May” src=”” (ANSA) – Siena, March 26 – The troubled bank Monte dei Paschi di Siena (MPS) will proceed with a share offering to raise three billion euros in capital in mid-May, its President Alessandro Profumo said Wednesday. P”We can start after May 12,” Profumo said on the sidelines of a conference./PPMeanwhile, the purchase of a 5.748% stake in MPS by United States fund Blackrock is “an important signal” that demonstrates a renewed interest from international players in the world’s oldest operating bank, said Profumo. “Blackrock is one of the largest asset managers in the world,” he said. “It’s very important to have them wanting to invest,” and sends a sign to other investors that MPS is bank that “did its homework,” said Profumo./PPThe planned share issue has been tied to repaying part of the 4.1-billion euros in State aid that MPS received from the Italian government as part of a plan to turn the lender around./PPAnalysts have said the bank may risk nationalization if it fails to generate enough capital to repay State aid./PPHe also commented on investigations by market regulator Consob and the Guardia di Finanza into the scandal-hit bank’s previous management./PP”We have always had a great confidence in the work of the court, always giving our full cooperation,” he said./PPItaly’s third-largest bank was thrown into crisis in January 2013 when it emerged that a shady series of derivative and structured-finance deals produced losses of 720 million euros./PPSiena prosecutors have been pursuing charges of alleged bribery, corruption, tax evasion and other illicit operations at MPS, which were either related to the bank’s nine-billion-euro acquisition of rival Antonveneta in 2008 or the period following the takeover./P
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