FILE PHOTO: A man walks in front of the Monte dei Paschi bank in Siena, central Italy, January 29, 2016. REUTERS/Max Rossi/File Photo

November 21, 2020

By Giuseppe Fonte, Pamela Barbaglia and Valentina Za

ROME/LONDON/MILAN (Reuters) – Italy has picked Bank of America and Orrick as financial and legal advisers to help the Treasury secure a merger deal for bailed-out bank Monte dei Paschi as part of its privatization plan, three sources close to the matter told Reuters.

Rome aims to clinch a merger with a healthier peer in 2021, the sources said, to secure a long-term solution for the bank, which is dogged by legal risks and poor quality assets.

Monte dei Paschi (MPS) has said its capital buffers are set to fall below minimum requirements early next year, hit by the cost of a bad loan clean-up it is about to complete as well as provisions against legal risks following the conviction of former top executives.

Italy’s Treasury and Orrick were not immediately available for comment, while Bank of America declined to comment.

(Reporting by Giuseppe Fonte, Pamela Barbaglia and Valentina Za; Editing by Mark Potter)

You Might Like
Learn more about RevenueStripe...