Italy confident over Monte dei Paschi deal in October – sources

FILE PHOTO: Banca Monte dei Paschi’s headquarters in Siena, Italy, October 27, 2017. REUTERS/Stefano Rellandini/File Photo

ROME (Reuters) – Italy’s Treasury is confident it will be able to announce a deal clinching the sale of selected parts of Monte dei Paschi to larger bank UniCredit next month, four sources close to the matter told Reuters.

The sources said the parties, which agreed to exclusive negotiations on July 29, had yet to exchange a comprehensive set of figures on the terms of the deal, which Rome will need to run past European Union authorities to make sure it complies with rules on state aid to banks.

The Treasury expects to be able to finalise a deal which would allow it to return Monte dei Paschi to private hands by cutting the 64% stake it holds following a 2017 bailout.

UniCredit declined to comment.

Source: Read Full Article