Italy authorises Monte Paschi foundation to underwrite capital hike

ROME Wed May 14, 2014 11:56am EDT

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ROME May 14 (Reuters) - Italy's Treasury has authorised the Monte Paschi Foundation, the former top shareholder of the Tuscan lender Monte dei Paschi di Siena, to underwrite the bank's capital increase of 5 billion euros ($6.86 billion), a Treasury sposkesman said on Wednesday.

The capital increase, which was recently increased from a previously planned 3 billion euros, is expected to begin in mid-June and be completed by the end of July.

($1 = 0.7294 Euros) (Reporting by Giuseppe Fonte, writing by Gavin Jones)