Shares in Monte Paschi fail to trade as cash call kicks off

MILAN: Shares in Monte dei Paschi di Siena failed to start trading at open on Monday as the Tuscan bank launched its second cash call in less than a year to repair its balance sheet.

Italy's third-largest bank is raising 3-billion euros ($3.3 billion) from investors -- more than its current market value -- selling 2.56 billion new shares at a 38.9 percent discount to the theoretical ex-rights price.

By 0711 GMT shares in Monte Paschi were indicated at 2.306 euros. Broker ICBPI calculates an ex-rights price for the stock of 1.92 euros based on its closing value on Friday.

Also the rights to buy into the cash call failed to start trading.