View of the entrance to the headquarters of Monte dei Paschi di Siena (MPS), the world’s oldest bank facing massive layoffs as part of a planned corporate merger, in Siena, Italy, August 11, 2021. Picture taken August 11, 2021. REUTERS/Jennifer Lorenzini/File Photo Acquire License Rights
MARRAKESH, Oct 13 (Reuters) – Italy will exit bailed-out bank Monte dei Paschi di Siena (MPS) (BMPS.MI) when market conditions are appropriate as there is no deadline to do so, Economy Minister Giancarlo Giorgetti said on Friday .
Commitments agreed with European Union authorities at the time of the 5.4 billion euro ($5.68 billion) MPS rescue package in 2017 oblige Rome to eventually give up its 64 percent share to sell to the bank.
After a failed attempt to sell MPS to UniCredit (CRDI.MI) in 2021, Italy agreed with Brussels on new privatization terms for MPS that were never fully disclosed.
“We will exit when it is appropriate to exit, while achieving the objective of repairing the Italian banking structure, and when market conditions appear appropriate,” Giorgetti said on the sidelines of the annual meetings of the World Bank and the International Monetary Fund in Marrakesh.
“There is no date that we depend on,” he added, without giving further details.
Both Giorgetti and Prime Minister Giorgia Meloni have said the government will seek to boost competition between banks by privatizing MPS.
This raises the prospect of a possible deal with Banco BPM (BAMI.MI) or BPER Banca (EMII.MI), Italy’s third and fourth largest banks respectively, although both have repeatedly said they are not interested in MPS.
Given the near-term lack of interested buyers, a share placement is seen as the most likely option to reduce the state’s stake and work toward re-privatization commitments, sources told Reuters.
($1 = 0.9499 euros)
Reporting by Elisa Martinuzzi, text by Giuseppe Fonte. Editing by Jane Merriman
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