Monte Paschi to foot extra costs to repay state aid

MILAN Wed Apr 30, 2014 11:29am EDT

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

The Monte dei Paschi bank headquarters is pictured in Siena August 16, 2013.

Credit: Reuters/Stefano Rellandini

MILAN (Reuters) - Italy's Monte dei Paschi di Siena (BMPS.MI) will have to pay a further 90 million euros ($124 million) to the Italian treasury on top of coupon costs when it reimburses most of a state bailout received in 2013, official documents showed.

In papers prepared ahead of a shareholder meeting, the bank said it would have to pay 3 percent more to refund 3 billion euros in state aid after its top shareholder sold most of its stake at an average price above the stock value used as a reference for the bailout.

Shares in Italy's third-largest bank were down more than 3 percent at 1405 GMT on Wednesday, as investors factored in the additional cost. "The 90 million euros is a negative factor we did not include in our estimates," said a Milan-based trader.

At the end of 2013 the treasury underwrote a 4.1 billion euro bond convertible into the bank's shares to bail it out.

The lender - hit hard by the euro zone debt crisis and loss-making derivative trades - plans to reimburse 3 billion euros in state aid next summer.

It will seek shareholders' approval to increase the size of a planned rights issue to 5 billion euros from the 3 billion euros previously penciled in on May 20.

Monte dei Paschi foundation, the bank's former controlling investor, has cut its stake to just 2.5 percent from 33.5 percent since the beginning of this year.

The lender will also have to pay 250 million euros in fees for the banks that will guarantee its increased capital hike, the bank said in another document posted on its website. ($1 = 0.7237 Euros)

(Reporting by Stefano Bernabei and Francesca Landini, editing by Mark Heinrich)

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