Banca Monte dei Paschi di Siena shares jump after Italy cuts stake in lender

Investing.com – Shares in Banca Monte dei Paschi di Siena (BIT:) surged after Italy sold 15% of its stake in the bailed-out lender, raising 1.1 billion euros ($1.16 billion).

Italy’s Treasury placed the shares at 5.792 euros each in an accelerated bookbuilding procedure, representing a 5% premium to Wednesday’s closing price. The sale, once settled, will bring Italy’s interest in MPS down to 11.7% from 26.7%.

Banco BPM (BIT:), Italy’s third-largest bank and Rome’s preferred suitor for a merger with Monte dei Paschi di Siena (MPS), has also now assumed a 5% stake. It added that it has no plans to surpass ownership of 9.9% in MPS, although the move was seen as a potential sign that the two lenders may be heading for a tie-up, particularly with both under pressure from a jump in technology costs and falling interest rates.

In a statement, Banco BPM said the acquisition of the stake in MPS was part of “the broader context” of its decision last week to take full control of Anima Holding, a fund manager that sells its products through MPS branches.

Anima, meanwhile, said it had taken a 3% stake in MPS. Francesco Gaetano Caltagirone, a shareholder in both Banco BPM and Anima, also purchased a 3.5% in MPS, along with Delfin, the holding company of the Del Vecchio family, according to Reuters.

Banco BPM’s Anima deal, which is tipped be worth up to 1.6 billion euros, would see its insurance business assume at least about a 67% stake in Anima.

By conducting the transaction through the insurance unit, Banco BPM, which currently has a 22% interest in Anima, can increase its stake while using minimal capital. Earlier this year, France’s BNP Paribas (OTC:) carried out a similar purchase of the asset manager of insurer AXA via its BNP Paribas Cardif unit.

(Reuters contributed reporting.)