Monte Paschi shares higher in volatile trade

MILAN Fri Jan 25, 2013 3:11am EST

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MILAN (Reuters) - Shares in Banca Monte dei Paschi di Siena (BMPS.MI) rose as much as 5 percent after opening lower in volatile trading on Friday, as the bank remains mired in a scandal concerning loss-making structured trades.

The shareholders of the bank, the world's oldest, meet on Friday to vote on a capital increase needed to pay the way for state aid.

Monte dei Paschi this week revealed loss-making derivatives trades that could cost it as much as 720 million euros (US$956 million), pushing the bank centre stage in a crucial general election campaign.

(Reporting by Antonella Ciancio, editing by Stephen Jewkes)