Monte dei Paschi secures cash call support from all eight banks

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MILAN — Italy’s Monte dei Paschi di Siena has signed a contract with a group of banks that will take on shares left unsold in an upcoming 2.5 billion euro ($2.4 billion) offer at the state-owned lender, a statement said on Thursday.

MPS has been struggling to secure underwriters for its seventh share issue in 14 years, forcing it to race until the very last minute to gather pre-commitments from investors to limit risks for the banking consortium.

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The underwriting price for the cash call has a discount of 7.79% on the theoretical ex-right price (TERP) based on the official closing price of Oct. 11, the lender said. (Reporting by Francesca Piscioneri; editing by Gianluca Semeraro)