- Italy published a decree on Friday authorising a state recapitalisation of Monte dei Paschi di Siena, formally bringing the rescue of the country's fourth-biggest bank into effect.
The rescue will include a new share issue for 4.5 billion euros (4 billion pounds) as part of a debt-to-equity swap, and the state will plough in a further 3.85 billion euros, the text published on the official legislative website showed.
The Treasury will pay 6.49 euros for each Monte dei Paschi share while subordinated bondholders, whose debt is being converted into equity as part of the bailout, will receive shares in the Tuscan bank at 8.65 euros each, the text showed.
(This version of the story corrects second paragraph to show that overall recapitalisation is worth 8.3 billion euros)
(Reporting by Giuseppe Fonte, writing by Isla Binnie, editing by Valentina Za)
The rescue will include a new share issue for 4.5 billion euros (4 billion pounds) as part of a debt-to-equity swap, and the state will plough in a further 3.85 billion euros, the text published on the official legislative website showed.
The Treasury will pay 6.49 euros for each Monte dei Paschi share while subordinated bondholders, whose debt is being converted into equity as part of the bailout, will receive shares in the Tuscan bank at 8.65 euros each, the text showed.
(This version of the story corrects second paragraph to show that overall recapitalisation is worth 8.3 billion euros)
(Reporting by Giuseppe Fonte, writing by Isla Binnie, editing by Valentina Za)