MILAN (Reuters) – Italy’s Monte dei Paschi (MPS) said on Thursday it was working to reduce its legal risks while the European Union assessed the state-owned bank’s ability to stay in business before unlocking more public aid.
Italy rescued MPS in 2017 at a cost of 5.4 billion euros ($6.6 billion) to taxpayers. It now stands ready to cover at least in part a 2.5 billion euro capital shortfall at the lender, but wants to first find a buyer for it.
MPS has said it will proceed with a cash call should a merger fail to materialise.
In a statement on Thursday, it said significant uncertainties clouded its capital raising plans due to the ongoing assessment being carried out by EU competition authorities of the bank’s ability to stand on its own feet.
($1 = 0.8212 euros)
(Reporting by Valentina Za; Editing by Gareth Jones)
