Italy offloads 25% stake in Monte dei Paschi
Shares in Banca Monte dei Paschi di Siena dropped on Tuesday morning in Milan after the Italian government offloaded a 25% stake in the banking group.
The government, which bailed out the struggling lender in 2017, raised €920m from the deal, according to a statement from the finance ministry, Ministero dell’Economia e delle Finanze (MEF).
The transaction took Italy's shareholding from 64.23% to 39.23% in the bank, otherwise known as MPS.
Shares were sold at €2.92, a discount of 4.9% on Monday's closing price, but 50% higher than the share price back in November 2022 when the bank undertook a capital raise.
"The transaction represents the first phase of a broader process that will lead the MEF to achieve full value for the bank, in the interest of the same and all stakeholders, in the context of a solid capital position and profitability profile that characterises the bank and its prospects for further development," MEF said.
The stock was down 4.9% to €2.88 by 1154 GMT.