Exclusive: Italy chooses Bank of America and Orrick to advise on MPS privatization, sources say
© Reuters. FILE PHOTO: A logo of Monte dei Paschi di Siena bank is visible on the ground in downtown Siena
By Giuseppe Fonte, Pamela Barbaglia and Valentina Za
ROME / LONDON / MILAN (Reuters) – Italy has selected Bank of America (NYSE 🙂 and Orrick as financial and legal advisers to help the Treasury reach a merger deal for bailout Monte dei Paschi as part of its privatization plan, three of the sources familiar with the matter told Reuters.
Rome aims to complete a merger with a healthier peer in 2021, the sources say, to secure a long-term solution for the bank, which is hampered by legal risks and shoddy assets.
Monte dei Paschi (MPS) has said his capital buffers are expected to fall below minimum requirements early next year, hit by the cost of a bad debt cleanup he is close to completing as well as by provisions against legal risks following the conviction of the former. senior executives.
Italy’s Treasury and Orrick were not immediately available for comment, while Bank of America declined to comment.
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