Italian banks UniCredit SpA and Banca Monte dei Paschi di Siena SpA announced via a joint statement on Sunday that they are no longer in discussion for the former to absorb the latter. As per people familiar with the matter, the Italian government and UniCredit could not agree on how much new capital Banca Monte needed and the assets to be transferred, Bloomberg reported. The government led by PM Mario Draghi will now seek an extension on the year-end deadline from the EU for divesting Banca Monte, which was nationalized in 2017. Bloomberg notes that the focus will now turn to Italy’s third largest bank, Banco BPM SpA, which is speculated to be both a possible buyer of Banca Monte and a new target for UniCredit.
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