EXCLUSIVE Italy, UniCredit to end talks over Monte dei Paschi sale -sources

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Italy's government and UniCredit are preparing to call off negotiations over the sale of ailing bank Monte dei Paschi (MPS) after efforts to reach an agreement over a costly recapitalization plan fell through, sources told Reuters.

after efforts to reach an agreement over a costly recapitalization plan fell through, sources told Reuters.

The decision makes it harder for Prime Minister Mario Draghi's government to meet pledges to EU regulators to re-privatise the bank by mid-2022. Disagreements recently resurfaced over the assets to be sold, with Rome pushing to include MPS' capital services arm and its leasing and factoring units, two sources had said.

"No deal is possible under UniCredit's conditions right now. But the same framework that was offered to UniCredit could be applied to a standalone plan," he said.

 

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