Italy’s Monte dei Paschi sees costs of rescue deal at €558m

The government is ready to step in with state money to keep the Siena-based bank afloat

Ailing Italian bank Monte dei Paschi di Siena is estimating the cost of its rescue deal, including fees paid to investment banks, at €558 million, it said in a prospectus for the operation published on Friday.

The figure includes a €200 million payment to the Atlante bailout fund that is slated to buy a chunk of the bank’s bad loans.

Fees for the banks that will try to place newly issued shares in the lender fell to €84 million from €170 million estimated previously after the banks walked out of a preliminary deal to underwrite the share issue.

The bank also said no fees related to an anchor investor taking part in the cash call had been included in the estimate because “at present no agreement that would envisage the payment of such fees is being negotiated”.

– (Reuters)