MPS shares soar as board scheduled to discuss rescue plan
Plan presented by former industry minister Passera
18 Ottobre 2016
Milan, October 18 - Shares in the Monte dei Paschi di Siena (MPS) bank soared 7.8% at 0.18 euros in early trading on Tuesday as the troubled lender's board was scheduled to meet to discuss a rescue plan presented by former industry minister Corrado Passera. The stock was up 6.24% at 0.17 euros later in the morning following reports that the board meeting could ask Passera, former CEO of Intesa Sanpaolo, for more details to decide whether his non-binding offer or parts of it will be incorporated into the bank's standing rescue plan. The bank is currently working to execute a rescue project approved in July providing for a five-billion-euro capital boosting plan and the sale of 28 billion euros in bad loans. The plan could reportedly include 3,000 layoffs. The alternative rescue proposal was presented by Passera on Friday. Intesa Sanpaolo is Italy's second biggest bank while MPS is its third-biggest - and also the world's oldest bank.