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Former Italy minister readying plan for Monte dei Paschi-sources
October 7, 2016 / 6:01 PM / in a year

Former Italy minister readying plan for Monte dei Paschi-sources

LONDON, Oct 7 (Reuters) - A former Italian industry minister is preparing an alternative rescue plan for bank Monte dei Paschi di Siena amid signs that an existing 5-billion euro ($5.6 billion)recapitalisation arranged by JP Morgan is failing to draw investor support, three sources familiar to the matter said.

Corrado Passera, who also previously served as chief executive of Intesa Sanpaolo, is working with a series of private equity firms including U.S. buyout fund Warburg Pincus on a plan that includes a reserved capital increase of between 2 billion to 2.5 billion euros, the sources said.

Two of the sources said none of the funds approached by Passera had committed to backing the fundraising.

“They are just open to the idea of doing a deal subject to due diligence,” one source said. Another source said no deal was imminent. ($1 = 0.8951 euros) (Reporting by Pamela Barbaglia)

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