Unique: Italy selects Financial institution of America and Orrick to advise on the privatization of MPS
© Reuters. FILE PHOTO: A logo of the Monte dei Paschi di Siena Bank can be seen on the floor in downtown Siena
By Giuseppe Fonte, Pamela Barbaglia and Valentina Za
ROME / LONDON / MILAN (Reuters) – Italy has selected Bank of America (NYSE 🙂 and Orrick as financial and legal advisors to help the Treasury Department secure a merger deal for bailed out Monte dei Paschi as part of its privatization plan, three sources close to the matter told Reuters.
Rome plans to complete a merger with a healthier colleague in 2021 to find a long-term solution for the bank riddled with legal risks and poor quality assets.
Monte dei Paschi (MPS) has announced that its capital buffers will fall below the minimum requirements early next year. This is hampered by the cost of a soon-to-be-completed loan clean-up, as well as provisions against legal risk after convicting top managers.
Italy's Treasury and Orrick were not immediately available to comment, while Bank of America declined to comment.
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