Shares of troubled Italian lender Banca Monte dei Paschi di Siena fell sharply on Tuesday following media report that its board is to discuss a capital increase in the coming months.
In a bid to stave off nationalization, the board of Banca Monte dei Paschi di Siena (BMPS) is expected to approve a capital increase of up to 3 billion euros ($4.1 billion) on Tuesday and could launch the rights issues as soon as January, according to a Reuters report on Monday.
In a statement Monday, the Tuscan lender said a board meeting had been called to discuss “capital operations”, without giving more details.
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