Reuters first to report Italy, UniCredit to end Monte dei Paschi sale talks; market reacts

Reuters broke the news that the Italian government and UniCredit had called off discussions over the sale of Monte dei Paschi (MPS), with the two sides poles apart over the terms of a costly recapitalization plan for the Tuscan bank. News that the deal had collapsed was later confirmed in a joint statement the following day. The move complicates efforts by Prime Minister Mario Draghi’s government to meet a mid-2022 deadline to re-privatize the bank Rome rescued in 2017.