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"The
discussion is still ongoing, but the board is set to reject the
proposal," one of the sources said.
The board of the Tuscan bank was meeting on Friday to approve
first-half results and its own rescue plan that envisages a 5
billion euro ($5.56 billion) share issue as well as a 10 billion
euro sale of loans the bank granted to borrowers and now deemed
insolvent.
A source told Reuters earlier that the alternative plan
envisaged a 2.5-3.0 billion euro cash call and the voluntary
partial conversion of some of the bank's subordinated bonds into
equity and was backed by some U.S. private equity funds.
(Reporting by Paola Arosio, writing by Agnieszka Flak)
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