MPS sells 60% Biverbanca stake to cover capital shortfall

Banca Monte dei Paschi di Siena (MPS), Italy’s third-biggest lender, has reached an agreement with Cassa di Risparmio di Asti to sell a 60% stake in Piedmont-based Biverbanca.

The value of the deal is understood to be around €200m, which will partially cover the €3.3bn capital target set for MPS by the European Banking Authority.

Consequences on the asset management units of the bank are not clear at the moment.

A spokeperson at the bank confirmed to Investment Europe that some changes in the units are likely to be announced when the bank will present its business plan on June 27.

During the same presentation, MPS is also expected to announce measures to cover the rest of its capital target. The bank still needs to find €1bn to €1.5bn.

According to press reports, MPS could issue high-yielding government-backed bonds or issue contingent convertible bonds, which would then been converted into equity in case of trouble.

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