Ailing Italian bank Monte dei Paschi di Siena (BMPS.MI) on Thursday formally approved a last-ditch attempt to raise 5 billion euros (4.17 billion pounds) by year end through a new debt swap offer and a share issue.
The bank, which is expected to need state support, said in a statement the minimum price for the share sale – which has not been underwritten by a consortium of banks – had been set at 1 euro per share.
Sixty-five percent of the share sale will be reserved for institutional investors in Italy and abroad. The bank also said it will extend a debt swap offer to include a 1 billion-euro hybrid financial instrument known as Fresh 2008.
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