(Adds Monte dei Paschi stake, shares)
LONDON Feb 12 Italy has appointed special
administrators to run small cooperative lender Banca Popolare di
Spoleto after a request from the country's central
bank, the company said in a statement on Tuesday.
The move was a result of the "negative outcome" of
inspections conducted by the Bank of Italy, the statement said,
giving no further details.
Banca Popolare di Spoleto is a minnow, with a market
capitalisation of around 74 million euros. However, scandal-hit
lender Monte dei Paschi di Siena has a stake of 25.9
percent in the smaller company.
The new administrators will be supervised by the Bank of
Italy and act to put the business back on a stable footing as
well as protecting its customers.
The bank will continue to operate normally and customers
will still be able to make withdrawals, the statement said.
Shares in Banca Popolare di Spoleto were too volatile for
trading to resume on Tuesday afternoon after the statement was
released. Prices were indicated around 12.6 percent below the
last trade price.
(Writing by Keith Weir and Jessica Donati; Editing by Helen