Shares of embattled Italian lender Banca Monte dei Paschi di Siena SpA slid 7.2% in early trade after media reports said a state bailout could be announced as soon as Thursday. The bank, which has been racing to raise 5 billion euros ($5.22 billion) by the end of the year, said late Wednesday it had failed to secure an anchor investor for its private rescue deal, according to media reports. That had dissuaded other major investors from supporting the deal, making the €5 billion target almost impossible to reach. BMPS had hoped Qatar’s sovereign wealth fund would inject €1 billion into the bank, but that option is now off the table, Reuters reported, citing people familiar with the rescue plan. Additionally, a debt-for-equity swap offer failed to raise as much capital as hoped. Italy’s parliament on Wednesday approved a €20 billion loan to the country’s ailing banking sector, which also can be used to bailout Monte dei Paschi.
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