MILAN Dec 1 Italian bank Monte dei Paschi di
Siena said on Thursday it had not been able to include
a nominal 1 billion euros in so-called "Fresh" financial
instruments issued in 2008 in its offer to convert part of its
debt into newly-issued shares.
The debt-to-equity swap offer is a key plank of a 5 billion
euro ($5.3 billion) capital raising plan the bank is striving to
complete this year to stave off the threat of being wound down.
"The result of the analyses conducted so far regarding the
possibility of including the "Fresh 2008" issue in the voluntary
conversion offer, did not allow the bank for the time being to
proceed with the plan," Monte dei Paschi said in a statement.
Monte dei Paschi CFO said on Wednesday the inclusion of the
Fresh notes looked "quite difficult" given regulatory and time
The Italian press has reported that a group of funds led by
Attestor Capital had bought the Fresh notes with the idea of
converting them, but they failed to reach an accord on the terms
of the conversion with the bank.
($1 = 0.9420 euros)
(Reporting by Valentina Za, editing by Francesca Landini)