October 4, 2016 / 9:15 AM / in a year

Italy's Consob extends, widens short-selling ban on Monte dei Paschi

MILAN (Reuters) - Italy’s market watchdog on Tuesday extended and widened a short-selling ban on Monte dei Paschi di Siena in an effort to ease the troubled bank’s capital raising efforts.

Consob said in a statement it was extending to Jan. 5, 2017 a ban on selling shares in the bank that investors did not previously owned.

“To facilitate possible transactions on the bank’s capital, the ban has been modified to include also option rights, convertible bonds and other financial instruments that entitle investors to receive newly-issued Monte dei Paschi shares,” the regulator said in a statement.

Monte dei Paschi must raise 5 billion euros (4.38 billion pounds) as part of a rescue plan unveiled in July to stave off the risk of being wound down.

Reporting by Valentina Za; editing by Francesca Landini

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