Banca Monte dei Paschi di Siena expects to close the sale of 26bn of bad loans within days following a last-ditch bid from Italys industry-backed rescue fund to revive a deal that looked to have collapsed.
A deal to would unlock billions of euros of public funds to recapitalise MPS, save the Tuscan bank from a politically sensitive resolution or liquidation process, and end months of uncertainty since it failed to recapitalise privately last year.
The rescue fund, Atlante II, has been in talks with MPS for months, and had initially planned to invest in the bad loan portfolio alongside Fortress and Elliott. The US funds pulled out of the talks earlier this month, in a move that seemed to have derailed the deal entirely.
But the collapse of B…
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