AFP, Milan :
Struggling Italian bank Monte dei Paschi di Siena (BMPS) announced Thursday that its bid to raise five billion euros ($5.22 billion) from the markets had failed, a development likely to lead to a government bailout.
“It was not possible to attain the sum of five billion euros,” the bank said in a statement, adding the operation had been hampered by a lack of so-called “anchor investors”.
BMPS, the world’s oldest bank and Italy’s third-biggest, launched a bid to sell fresh shares this week under plans to raise five billion euros to shore up its capital base.
The result of the share offer had been expected by Friday.
But the bank had already acknowledged late Wednesday that it had failed to attract an “anchor investor”-a key sign of market confidence-after pinning its hopes on a big Qatari take-up. A separate debt-for-equity swap offer to replenish the bank’s coffers reaped just over two billion euros.
The plan additionally entails selling off 27.6 billion euros in bad loans.
Seeking to stop any runaway crisis in the banking industry, the Italian government has said it stands ready to step in if necessary.
Parliament approved on Wednesday a 20-billion-euro bailout package to potentially support ailing banks.
Struggling Italian bank Monte dei Paschi di Siena (BMPS) announced Thursday that its bid to raise five billion euros ($5.22 billion) from the markets had failed, a development likely to lead to a government bailout.
“It was not possible to attain the sum of five billion euros,” the bank said in a statement, adding the operation had been hampered by a lack of so-called “anchor investors”.
BMPS, the world’s oldest bank and Italy’s third-biggest, launched a bid to sell fresh shares this week under plans to raise five billion euros to shore up its capital base.
The result of the share offer had been expected by Friday.
But the bank had already acknowledged late Wednesday that it had failed to attract an “anchor investor”-a key sign of market confidence-after pinning its hopes on a big Qatari take-up. A separate debt-for-equity swap offer to replenish the bank’s coffers reaped just over two billion euros.
The plan additionally entails selling off 27.6 billion euros in bad loans.
Seeking to stop any runaway crisis in the banking industry, the Italian government has said it stands ready to step in if necessary.
Parliament approved on Wednesday a 20-billion-euro bailout package to potentially support ailing banks.
