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Breakingviews: Monte Paschi revamp to lure foreign buyers?

Tuesday, October 08, 2013 - 04:30

Oct. 8 - The Italian bank will shed thousands more staff to cut back its sovereign debt portfolio. Investors may still be wary but foreign acquirers have more clarity, says Breakingviews.

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So we're talking up ranks in the periphery today first to revamp an Italian bank MP yes. When -- opened the door to foreign biases that breaking views and us sometime that -- a 51% stake in retailer. And it caught doing less and looks like the Spanish prime believes in Spain again how come -- -- -- joins relentless -- -- yes. Two and a half billion Euro capital behind by the end of next year is what's required it seems like a -- ruled out. May be. Our foreign -- will step in in the mean time. Odd and yet it seems like a very tall order even by the -- predictions which are probably optimistic here aiming for a 9% return -- equity in 2017. Which is pretty low buy it for what banks are supposed to get pretty far in the future. Pretty doubtful. The shareholders would then have to basically put up on double their baton on for the capital offering to get away. -- seems unlikely. And at the same time this deal is this is planned that their proposals. What's gonna happen and yes has put forward -- across Louisiana. Is. It is easy out. Is clear clears away some of the barriers that one would have had for a external -- so. Unattractive internal buyers to the current owners more attractive external buyers what's the answer yes and that's resident who is being talked about. Well intensity with -- -- could do it I was like media you credit doing it because the chairman of and guesses -- for four months on the Oprah Cuomo who used to run UniCredit says. He could return sort of Microsoft Nokia kind of deal. More likely there actually is BNP the French bank BNP Paribas. Which already has a presence in Italy which was interested in part of the MP yes bank -- and yes bought it. A few years ago. And has expressed some interest in in the past and that's. And at the right price with the right legislation with the right supporting the government I think -- -- natural buyer but Saudi get in the house in order. Yeah I mean the probably the good thing about this is the key point here is that the European Union standards of come on chaps don't behave the way Italian banks -- is used to behave with the internal deals and state subsidies and you know keep in the -- and I believe. They seem to be saying yeah we'll we'll follow your your path here -- and happens a real open market for this bank that's really good sign up -- eight the other story sent under increasing its exposures now -- you detail cover them up. On the departmental I don't mind a hundred is that what led to finance all of Europe and -- -- -- tactic album. Little bit of journalist license area. How that -- -- -- all right increasing exposure to -- should we take calls from this or is this really just about a up a big. Play in the Spanish -- dating access to a huge number of crimes. Who they -- -- stuff. Yes. Both are true. We should take heart although it's it would be odd to -- this business pass that. That the management that add something there have been saying that they were it's. Wanted to be sure that they expanded outside of Spain and -- emphasize this. So effectively jumped at this business does suggest that they are they're changing their tune a little what they're seeing the end of the tunnel and Spain and that's the time they're probably good people and -- the best and that if they're willing to put a little bit more money into it to their home market that's tops we should probably pick out. But I guess I guess the the the other way of looking at it is. -- the single -- as you say the single launches exposure Spain's depressed consumers. Bob they are depressed and seamless. They are depressed for now something there has traditionally I'm gonna long term thinkers they won't be depressed forever and I guess this is bad to say that they are gonna be less depressed relatively soon. -- get pregnant thanks very much indeed Edward and a pass from -- breaking news. -- George RUS. Show comes on everyday atrocities -- and that he PST IMAX -- this is Fox's.

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Breakingviews: Monte Paschi revamp to lure foreign buyers?

Tuesday, October 08, 2013 - 04:30