Monte Paschi shareholders approve 5 billion-euro capital increase

MILAN Wed May 21, 2014 7:33am 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) - Shareholders in Italian lender Banca Monte dei Paschi di Siena (BMPS.MI) approved on Wednesday a proposal to boost the size of a planned share sale to 5 billion euros ($6.9 billion) to help it absorb a hit on its finances it expects from a Europe-wide bank health check.

At an extraordinary meeting in the bank's hometown of Siena, shareholders agreed to boost the capital increase, initially planned at 3 billion euros, by two billion euros as requested by the bank's management.

The new amount is twice the bank's current market value.

(Reporting by Silvia Aloisi, editing by Danilo Masoni)