A sensational break is looming between the Treasury and Unicredit in the negotiations on MPS. Behind the failure of the negotiations there would be the requests of the bank in Piazza Gae Aulenti considered too expensive for the Italian state. According to what was reported today by the Reuters agency, we are therefore moving towards the suspension of negotiations to reach an agreement on an expensive recapitalization plan of the Sienese bank.
UniCredit is asking for a recapitalization package worth over 7 billion euros and for the Treasury this request would make an operation “too punitive” for the Italian taxpayer. Reuters also explains how the break also stems from disagreements over the size and costs of job cuts, as well as a liability issue over how UniCredit calculates fair value adjustments on MPS liabilities have proven to be one of the main obstacles, this source said.
The exclusive negotiations between the Treasury and Unicredit began last July and the stakes set by Unicredit were neutrality in terms of capital, significant increase in earnings per share, protection from legal disputes and exclusion of non-performing loans from any transaction.