Italy to pick advisers to cut Monte dei Paschi stake
MILAN (Reuters) -Italy on Friday kicked off the process to pick financial and legal advisers to help the economy ministry find the best way to cut its controlling stake in Banca Monte dei Paschi di Siena, the Treasury said.
Rome owns 64% of Monte dei Paschi following a 2017 bailout.
A source familiar with the matter said the ministry planned to end the selection process "in a few weeks".
MPS privatisation is part of a wider 21 billion euro ($22.22 billion) sell-off plan announced by Prime Minister Giorgia Meloni to keep in check the euro zone's second-largest debt pile as a proportion of gross domestic output (GDP).
The sale of the stake could happen through one or more transactions, the ministry said in a statement.
In line with a 2020 decree adopted under Meloni's predecessor Giuseppe Conte, the Treasury listed among options an offer to either institutional or small investors, including the bank's employees, as well as possible extraordinary operations including a merger deal.
In 2021 Italy failed to clinch a deal with UniCredit for the re-privatisation of Monte dei Paschi. It was then forced to seek an extension of the deadline to cut its stake from the European Union.
Economy Minister Giancarlo Giorgetti last month said MPS could become a lever to build a strong new Italian banking group and the government did not need to raise cash quickly.
Given the absence of interested buyers in the short terms, a share placement is seen as the most likely option to reduce the stake and work towards re-privatisation commitments, sources have told Reuters.
A new department at the economy ministry led by former banker Marcello Sala will help Giorgetti find the best options to exit MPS.
Investment banks have already approached Sala as well as other Treasury officials to secure mandates for any deal, separate banking sources have said.
($1 = 0.9450 euros)
(Reporting by Giuseppe Fonte and Valentina Za, editing by Gavin Jones and Angus MacSwan)
