Former Italian minister to present rival plan for Monte Paschi: sources

MILAN (Reuters) - Former Italian industry minister and Intesa Sanpaolo CEO Corrado Passera will present on Friday a rival rescue plan for troubled lender Monte dei Paschi di Siena, three sources close to the matter said on Thursday.

The new proposal would be different from the one being drafted by JP Morgan and Mediobanca for the Tuscan lender, which is racing against the clock to put together a privately-backed bailout to soothe regulators’ concerns over its stability.

Banking sources says results of European bank stress tests, due to be published on Friday evening, will show the bank has insufficient capital to withstand an economic downturn.

Passera has sent details of an alternative plan to the bank and will formally submit it to the lender’s board on Friday.

Swiss bank UBS is involved among others in Passera’s plan, the sources said, confirming an earlier report by Italian newswire Ansa. Sources did not give further details of the proposal.

Monte dei Paschi and UBS declined to comment. It was not possible to reach Passera.

Reporting by Claudia Cristoferi and Silvia Aloisi, writing by Francesca Landini