MPS shares plunge 10.4% on rumours

P(See related) (ANSA) – Rome, April 15 – Rumours of a possible boost to a capital-increase plan led to a 10.4% loss in trading Tuesday in troubled Italian bank Monte dei Paschi di Siena (MPS).BRThe trading loss cost the bank about 410 million euros in capital, pushing its total market capitalization to about 2.5 billion euros.BRThe sell-off came after reports that MPS management is considering boosting a capital-increase plan to five billion euros from a previous planned increase of three billion euros.BRMPS confirmed that a capital increase beyond the initial plan is under consideration amid media reports the maximum could reach five billion euros as MPS moves to repay a government bailout of 4.1 billion euros made in late 2012.BRFailure to repay that loan could see MPS nationalized, the bank’s chairman warned last December.BRAny capital increase would need to be approved by shareholders in MPS, Italy’s third-largest bank.BRFounded in 1472 by the magistrate of the city state of Siena, MPS is the oldest surviving bank in the world and Italy’s third-largest bank.BR/P
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