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.

Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. As a result, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may suffer from using this data.

Fusion Media or anyone involved with Fusion Media assumes no liability for any loss or damage caused by reliance on the information such as data, offers, charts and buy / sell signals contained on this website. Please be fully informed about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.

Comments are closed.