Italy Sells 25% Stake in Monte dei Paschi, Reducing Its Holding to 39%

The sale, which raised 920 million euros, came at a price nearly 50% higher than last year's capital increase.

Italy's Treasury sold about 315 million shares, equivalent to a 25% stake, in bailed-out lender Banca Monte dei Paschi di Siena (BMPS), raising 920 million euros ($1 billion) and reducing its stake to 39%.
The sale price was nearly 50% higher than last year’s high-stakes 2.5 billion euro capital increase, which cost taxpayers 1.6 billion euros.
The price surge was prompted by higher interest rates, an improved business outlook and receding legal claims that historically weighed on the stock.
Rome will never recoup the around 5.4 billion euros it burnt to save Monte Paschi in 2017.
Two years ago, interest rates were low and Monte Paschi's recovery seemed a distant prospect. Yet now, the decision not to go ahead with the deal has turned out to be smart.