General view of a branch of Monte dei Paschi di Siena (MPS), the oldest bank in the world, which is facing massive layoffs as part of a planned business merger, in Siena, Italy, August 11 2021.
Reuters was first in May to report the Treasury was open to selling down its Monte dei Paschi (MPS) stake on the market if conditions were right.
Though the Treasury is considering cutting its stake with share placements, it would retain majority ownership, one of the sources said.
Bankers said the capital raise has made any deal more expensive for any buyer, complicating the prospect for a merger.
Reporting by Giuseppe Fonte in Roma and Valentina Za in Milan; editing by Alvise ArmelliniOur Standards: The Thomson Reuters Trust Principles.
Persons:
Jennifer Lorenzini, Rome, Luigi Lovaglio, Lovaglio, Giuseppe Fonte, Valentina Za, Alvise
Organizations:
REUTERS, European, Reuters, Treasury, EU, MPS, Banco, Bankers, Thomson
Locations:
Monte dei, Siena, Italy, Roma, Milan