By Helena Smolak

 

Shares of Banca Monte dei Paschi di Siena fell Tuesday after the Italian state sold a 25% stake in the world's oldest bank for 920 million euros ($1.01 billion).

At 0847 GMT, Monte dei Paschi shares traded 5.3% lower at EUR2.91.

Italy's Ministry of Economy and Finance said Monday that it placed the 314.9 million shares at EUR2.92 each through an accelerated book building reserved for Italian and foreign institutional investors in attempts to re-privatize the bank two years after a failed first attempt.

The price represented a 4.9% discount to Monte dei Paschi's closing share price of EUR3.07 on Monday, but is significantly higher than the subscription price of the bank's share capital increase in November 2022, the ministry said.

The sale means Italy's ownership in the bank falls to 39.23% from 64.23%, the ministry said. The ministry said it committed not to sell additional shares on the market for a period of 90 days.

 

Write to Helena Smolak at helena.smolak@wsj.com

 

(END) Dow Jones Newswires

November 21, 2023 04:16 ET (09:16 GMT)

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