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Monte dei paschi said hiring banks to find buyer, partner: Wsj
On BMPS DJ article (quoting people familiar with the matter) saying that goal is to find a buyer before rights issue making it unecessary....I believe it may fuel worries that UBI and or other Italian banks may be "forced" to rescue BMPS. Full article below
DJ Monte dei Paschi Is Up for Sale -- Sources By Giovanni Legorano in Milan, David Enrich and Shayndi Raice in London Banca Monte dei Paschi di Siena SpA, Italy's No. 3 bank and the world's oldest, is up for sale, according to people familiar with the matter.
The Tuscan lender, the worst performer in Europe's recent banking "stress tests," has hired investment bankers at UBS AG and Citigroup Inc. to find a buyer or merger partner, these people said. The sale process formally got under way this week, after the same two investment banks lined up underwriters for a planned EUR2.5 billion ($3.09 billion) stock sale for Monte dei Paschi.
Monte dei Paschi's goal is to find a buyer or merger partner before the so-called rights offering is actually consummated, possibly making that offering unnecessary, these people say. The rights offering is expected to take place in the second quarter of 2015.
It isn't clear how much Monte dei Paschi might fetch in any sale. The bank's shares, which have declined 40% this year, are currently worth a total of about EUR3.4 billion.
The people say UBS and Citigroup bankers are in the very early stages of identifying possible bidders for Monte dei Paschi, which was founded in 1472 and is considered the world's oldest bank. The list includes midsize Italian rival UBI Banca, as well as some large European banks that already operate in Italy. Monte dei Paschi executives haven't actually met with any potential suitors. UBI previously has said it isn't involved in any negotiations with Monte dei Paschi.
The list of potential buyers is limited by Monte dei Paschi's deep problems. In last month's stress tests, the bank was found to have a EUR2.1 billion capital shortfall--the biggest hole of any of the 150 banks that underwent the tests. The magnitude of the shortfall surprised analysts, investors and bank executives, partly because Monte dei Paschi had raised EUR5 billion only a few months earlier.
Like other Italian lenders, the Siena-based bank is weighed down by billions of euros of troubled loans. The bank also is embroiled in a longstanding dispute over derivatives tied to its holdings of Italian government bonds.
Top executives at several large European banks, including Banco Santander SA and Intesa Sanpaolo SpA, recently have said they aren't interested in buying Monte dei Paschi.
On BMPS DJ article (quoting people familiar with the matter) saying that goal is to find a buyer before rights issue making it unecessary....I believe it may fuel worries that UBI and or other Italian banks may be "forced" to rescue BMPS. Full article below
DJ Monte dei Paschi Is Up for Sale -- Sources By Giovanni Legorano in Milan, David Enrich and Shayndi Raice in London Banca Monte dei Paschi di Siena SpA, Italy's No. 3 bank and the world's oldest, is up for sale, according to people familiar with the matter.
The Tuscan lender, the worst performer in Europe's recent banking "stress tests," has hired investment bankers at UBS AG and Citigroup Inc. to find a buyer or merger partner, these people said. The sale process formally got under way this week, after the same two investment banks lined up underwriters for a planned EUR2.5 billion ($3.09 billion) stock sale for Monte dei Paschi.
Monte dei Paschi's goal is to find a buyer or merger partner before the so-called rights offering is actually consummated, possibly making that offering unnecessary, these people say. The rights offering is expected to take place in the second quarter of 2015.
It isn't clear how much Monte dei Paschi might fetch in any sale. The bank's shares, which have declined 40% this year, are currently worth a total of about EUR3.4 billion.
The people say UBS and Citigroup bankers are in the very early stages of identifying possible bidders for Monte dei Paschi, which was founded in 1472 and is considered the world's oldest bank. The list includes midsize Italian rival UBI Banca, as well as some large European banks that already operate in Italy. Monte dei Paschi executives haven't actually met with any potential suitors. UBI previously has said it isn't involved in any negotiations with Monte dei Paschi.
The list of potential buyers is limited by Monte dei Paschi's deep problems. In last month's stress tests, the bank was found to have a EUR2.1 billion capital shortfall--the biggest hole of any of the 150 banks that underwent the tests. The magnitude of the shortfall surprised analysts, investors and bank executives, partly because Monte dei Paschi had raised EUR5 billion only a few months earlier.
Like other Italian lenders, the Siena-based bank is weighed down by billions of euros of troubled loans. The bank also is embroiled in a longstanding dispute over derivatives tied to its holdings of Italian government bonds.
Top executives at several large European banks, including Banco Santander SA and Intesa Sanpaolo SpA, recently have said they aren't interested in buying Monte dei Paschi.
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