Monte Dei Paschi Seeks to Restart Talks With EU as It Looks to Chart Its Future

By Cristina Roca

Banca Monte dei Paschi di Siena SpA has taken steps to restart talks with the European Commission, as it tries to chart its future after the collapse of talks for it to be sold to UniCredit SpA.
The bank said late on Tuesday that it has made contact with Italy’s Ministry of Economy to restart discussions with the Commission’s Directorate-General for Competition.
The Italian government, which bailed out MPS in 2017, has until April to re-privatize it under an agreement made with European authorities.
After the collapse of talks for UniCredit to take over MPS, the Italian government contacted the European Commission to get a deadline extension, MPS said on Nov. 4.
The Italian government also held talks with the European Commission to determine the measures the bank would have to take in terms of its capital, according to MPS. On Nov. 4, MPS said it was reviewing its business plan, that it was weighing a potential capital increase, and that it expected the European Commission and the European Central Bank to assess the Italian state’s intervention in the company based on the bank’s “stand-alone viability” as per the revised plan.
Write to Cristina Roca at [email protected]