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Monte dei Paschi up 8 pct as board due to examine alternative rescue plan
October 18, 2016 / 7:26 AM / a year ago

Monte dei Paschi up 8 pct as board due to examine alternative rescue plan

MILAN, Oct 18 (Reuters) - Shares in Banca Monte dei Paschi rose more than 8 percent in early trade on Tuesday as the troubled lender’s board is due to meet to examine an alternative rescue plan presented by former industry minister Corrado Passera.

By 0715 GMT, the stock was up 5.8 percent at 0.1832 euros, after earlier touching 0.1875 euros.

“The stock is rising given the board’s willingness to consider Passera’s proposal; it seems there is a preliminary positive reaction to Passera’s plan,” a Milan-based trader said.

Several newspapers said that, while there may be no decision on the alternative proposal today, the board could ask Passera for more information to decide if and how parts of his offer could be incorporated into the bank’s current rescue plan based on a 5 billion euro ($5.6 billion) capital-boosting plan and the sale of 28 billion euros’ worth of bad loans. ($1 = 0.8928 euros) (Reporting by Agnieszka Flak; editing by Francesca Landini)

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