The restructuring plan with which Banca Monte dei Paschi di Siena seeks to obtain the definitive green light from Brussels for the 4,07 billion euro of funds received on loan from the Italian Treasury has been officially on the table of the EU Commission since this morning. This was stated by the press officer of the EU competition commissioner Joaquin Almunia.
The Sienese bank is scheduled to hold a board meeting on 14 November to examine the accounts for the quarter and, if it has received the go-ahead from Brussels, also the definitive examination of the plan.
From Brussels they let it be known that the times will not be long and that a decision should arrive by the end of the month, because the plan has already been extensively discussed between Rome and Brussels before its approval by the Italian authorities.
The guidelines of the restructuring plan have already been illustrated to the financial community and foresee an increase of up to 2,5 billion euro to repay 70% of the Treasury loan by 2014. Press rumors, not denied by the bank, however have the probable amount of the increase was indicated at 3 billion, with additional funds that would serve to prevent the Treasury from being paid in shares as consideration for the interest it must receive on the capital loaned to the bank.
Considering that the go-ahead from Brussels could arrive in the week ending, workingly, on November 22nd, the shareholders' meeting should be convened close to the Christmas break or between Christmas and New Year's. In any case, the first useful window to launch the increase would be in January. If instead Ubs and the administrators of Mps decide it is more convenient to have more time and the final figures for the closure of the 2013 financial statements, then we go to the second useful window in the spring.
Meanwhile, the Foundation, the current reference shareholder who has 33,5%, is racing against time to be able to value its share without impoverishing the assets, having to repay 350 million in debt to 12 creditor banks. Doing so after the increase would have serious contraindications: it would have to leave about a third of the increase launched by the bank unopted, risking that the price would fall beyond the natural dilutive effect linked to a recapitalization that is worth at least as much as the current stock market value.
