By Ed Frankl

 

Shares in Banca Monte dei Paschi di Siena SpA tumbled on Tuesday after French insurer AXA SA sold most of its 7.9% stake in the bank.

At 0915 GMT, shares were down 9.2% to EUR2.49.

AXA said Tuesday that it successfully sold 100 million shares worth 233 million euros ($247.2 million), in an accelerated bookbuild reserved to institutional investors, and would retain a 0.0007% stake in the world's oldest bank.

With Banca MPS's share price well above the EUR2 a share price of the bank's capital increase, AXA's move is a financial decision, considering that the intervention in the bank's capital was aimed at ensuring the success of the capital increase and, consequently, supporting its bancassurance joint venture with the Italian bank, Equita analyst Andrea Lisi said in a note.

The sale won't impact the bancassurance partnership, which is set to expire in 2027, Mr. Lisi said.

 

Write to Ed Frankl at edward.frankl@wsj.com

 

(END) Dow Jones Newswires

February 28, 2023 04:43 ET (09:43 GMT)

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