MILAN: Shares in Italian bank Monte dei Paschi di Siena were volatile in early trade on Thursday after the bank said the treasury would keep a 4 percent stake in the lender until the end of the year.
The bank, which is due to launch a 3 billion euro capital increase to fill a shortfall uncovered by a Europe-wide health check of the sector, also said late on Wednesday it would launch a reverse stock split giving shareholders 1 new share for every 20 shares held.
The stock opened up more than 1 percent but had pared gains by 0810 GMT, having lost nearly 10 percent earlier this week. Broker ICBPI said the cash call would be very dilutive for existing shareholders.
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