Italian government and bank UniCredit SpA over the sale of nationalized lender Banca Monte dei Paschi di Siena SpA are close to falling apart. Negotiations between UniCredit and the Italian economy ministry, which has controlled BMPS since it was bailed out by the state in 2017. The government, which is obliged under EU rules to find a private buyer for BMPS by the end of 2021, will now likely be forced “to seek an extension” from Brussels
The fate of MPS does not seem to be very different from that of national airline Alitalia. No one other than the state seems willing to take on its inefficiencies. Founded in Siena, Tuscany in 1472, BMPS has suffered years of trouble beginning with a disastrous 2007 purchase of the Antonveneta bank at twice its estimated value. BMPS then drifted into scandal when its management team was accused of accounting fraud and misuse of funds.