Fate of Monte's Tier 2s unclear amid takeover talks

摘要

Tier 2 bonds from long-troubled Italian BANCA MONTE DEI PASCHI DI SIENA faced another turbulent week as investors weighed up the risk that holders may suffer losses as part of any acquisition despite a return to profitability by the lender. BMPS reported a net profit of €202m for the first half of 2021 on Thursday and said it now faced a smaller capital shortfall than it had once forecast. It now expects its capital reserves to be less than €500m short of its requirements as of June 30 2022. Last November it had warned of a €1.5bn shortfall. The positive news emerged as takeover talks with national champion UniCredit got under way, making the fate of the lender a little less clouded.