Banco BPM Buys 5% of Monte Paschi as Italy Cuts Stake (1)

Italy’s government said Wednesday that it sold a stake of 15% in Banca Monte dei Paschi di Siena SpA via a placement for about €1.1 billion.

Milan-based lender Banco BPM SpA bought 5% of the placing, according to a statement, saying it does not want to request permission to exceed a 10% holding.

“We have completed an important action as we had announced in institutional venues by providing for the implementation of an Italian banking and financial policy operation aimed at strengthening the shareholder base,” Italian Finance Minister Giancarlo Giorgetti said in a statement.

For Italy, which nationalized Monte ...