Banca Monte dei Paschi di Siena SpA will probably fail to lure sufficient demand for a 5 billion-euro ($5.2 billion) capital increase, leading to what would be the country’s biggest bank nationalization in decades, said people with knowledge of the matter.
No anchor investor has shown interest in the stock sale, the Siena-based company said in a statement late Wednesday. Two debt-for-equity swap offers will raise about 2 billion euros, with investors converting bonds for about 2.5 billion euros, the lender said. The interest is probably insufficient to pull the deal off, said the people, who asked not to be identified before a final assessment.
Qatar’s sovereign-wealth fund, which had considered an investment, hasn’t committed to buying shares, people with knowledge of the matter have said. Other institutions that were considering buying shares have indicated that they would put funds in the troubled bank only if it’s able to raise 1 billion euros from cornerstone investors, according to the people.