Axa might invest at least $98 million in Italy's MPS

AXA’s funding not tied to JV revision – sources
No accord signed but with cornerstone buyers – sources
Talks ongoing, MPS eyes Oct. 17 launch date for money name – sources

MILAN, Oct 2 (Reuters) – French insurer Axa (AXAF.PA) is contemplating investing at the very least 100 million euros ($97.99 million) in a brand new share sale by Monte dei Paschi di Siena (MPS) (BMPS.MI) with none modifications to its three way partnership with the Tuscan financial institution, two folks near the matter mentioned.

State-owned MPS has held talks with Axa and asset supervisor Anima, each of which distribute their merchandise by the state-owned financial institution’s branches, over their participation within the upcoming new share difficulty, value as much as 2.5 billion euros.

Whereas Anima’s position is linked to a revision of the business settlement with MPS, AXA’s funding is just not tied to any modifications in its joint-venture accords with MPS, the sources mentioned.

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The folks mentioned Axa was contemplating investing between 100 million and 150 million euros within the share sale, of which the state can cowl 1.6 billion euros, primarily based on its 64% stake within the financial institution it rescued in 2017.

Axa declined to remark.

MPS should elevate the remainder from non-public buyers on account of European Union guidelines on state help, however the supply comes as recession and inflation threats lead buyers to chop riskier property.

MPS had held again on involving Anima and AXA as a result of business ties over fee-yielding companies may hamper its future seek for a merger accomplice.

Talks, which began in earnest solely lately, are making sluggish progress and no accord has but been signed, the sources mentioned.

MPS had thought of launching the share supply on Oct. 10 offered it may safe cornerstone buyers by then. learn extra

The sale is now anticipated to start out on Oct. 17, which nonetheless provides MPS adequate time to lift the funds in time to finance job cuts by a pricey voluntary early retirement scheme.

Axa and MPS first joined forces in 2007 when the French insurer purchased 50% of MPS’ life- and non-life insurance coverage items in addition to of its pension fund enterprise. Renewed a decade later, the accord expires in 2027.

($1 = 1.0205 euros)