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Troubled Italian Bank Delays Capital Increase Until Mid-2014


Ron Burgundy
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A man walks past the headquarters of the Banca Monte dei Paschi di Siena (MPS), the world's oldest bank, in Siena, ccentral Italy on January 25, 2013Shareholders of Italy's troubled Banca Monte dei Paschi di Siena -- the world's oldest bank -- on Saturday voted to postpone until mid-2014 a giant capital increase needed to stave off nationalisation. Management had wanted the 3.0-billion-euro ($4.0-billion) capital increase to be completed by January but a shareholder meeting overwhelmingly backed a proposal by the bank's foundation, which owns a 33.5 stake in the lender, to delay the cash call until May or June. Paying for the capital increase would hit the foundation badly, prompting it to seek more time to allow it to sell its shares to a third party. The shareholders' meeting in Siena was originally scheduled to be held on Friday but it had to be moved to Saturday because there were not enough shareholders present to meet the required 50.1 percent threshold.




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