CERNOBBIO, Italy, Sept 2 Monte dei Paschi di
Siena is studying several options, including a
debt-to-equity conversion, to boost its capital, Italy's Economy
Minister said, adding the treasury had not decided yet whether
to buy into the bank's capital increase.
The treasury, which has become the top shareholder in the
bank, has sponsored a two-pillar plan announced in July to
strengthen the bank's capital base and cut bad loans to avoid it
being wound down.
Monte dei Paschi and its advisers, JPMorgan and Mediobanca,
are currently considering the option of converting the bulk of
the lender's subordinated debt into equity to pare back a
planned five billion euro cash call, sources said on Tuesday.
"All the options are on the table for Monte dei Paschi's
capital increase and ... different measures will probably
coexist," Pier Carlo Padoan told Reuters on the sidelines of
Ambrosetti's European House conference.
The minister added that "the treasury will evaluate whether
to buy into the bank's capital increase when details are clear."
(Reporting by Francesca Landini and Luca Trogni)