Monte Paschi shareholders approve 5 billion-euro capital increase

Wed May 21, 2014 7:34am EDT
 
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MILAN (Reuters) - Shareholders in Italian lender Banca Monte dei Paschi di Siena (BMPS.MI: Quote) approved on Wednesday a proposal to boost the size of a planned share sale to 5 billion euros ($6.9 billion) to help it absorb a hit on its finances it expects from a Europe-wide bank health check.

At an extraordinary meeting in the bank's hometown of Siena, shareholders agreed to boost the capital increase, initially planned at 3 billion euros, by two billion euros as requested by the bank's management.

The new amount is twice the bank's current market value.

(Reporting by Silvia Aloisi, editing by Danilo Masoni)

 
The Monte dei Paschi bank headquarters is pictured in Siena August 16, 2013. REUTERS/Stefano Rellandini