Bloomberg News

Credit Suisse, Fondazione MPS Said to Have Reached Debt Accord

March 13, 2012

Credit Suisse Group AG (CSGN) reached an accord with Fondazione Monte dei Paschi di Siena to restructure a loan that uses Banca Monte dei Paschi di Siena SpA’s shares as collateral, two people familiar with the matter said.

The agreement, which involves a collateral contract for a 490 million-euro ($642 million) loan, will allow Fondazione Monte Paschi to proceed with a plan to sell as much as 15.5 percent of Monte Paschi, said one of the people, who declined to be identified because the accord is confidential.

The foundation, which owns about 46 percent of Monte Paschi, reached a similar agreement with a pool of banks led by JPMorgan Chase & Co. on a separate loan of 525 million euros last week. The two accords give the foundation the green light to sell the shares as part of a plan to cut debt.

The agreement with Credit Suisse was earlier reported by news agency Ansa. Officials at Fondazione Monte Paschi and Credit Suisse declined to comment.

Monte Paschi fell 1.6 cents, or 0.4 percent, to 37.95 cents in Milan trading, compared with a 3.2 percent advance in the 43- company Bloomberg Europe Banks and Financial Services Index.

Investment firms Equinox and Clessidra are in talks with Fondazione Monte dei Paschi on its stake in the bank, Italian daily Corriere della Sera reported last month, without saying how it got the information.

To contact the reporter on this story: Sonia Sirletti in Milan at Elisa Martinuzzi in Milan at

To contact the editor responsible for this story: Frank Connelly at

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