MPS stock soars amid Banco BPM merger speculation

(ANSA) - ROME, NOV 14 - The share price of Monte dei Paschi di Siena (MPS) soared on Thursday after fellow lender Banco BPM acquired a 5% stake in it, sparking hot speculation that a merger could be on the cards.
    MPS's stock was up by over 12% at the middle of the day's trading.
    Banco BPM bought the stake as the Italian Treasury sold MPS off 15% of the world's oldest bank on Wednesday.
    The Treasury took control of MPS in a 2017 bailout.
    The State has been lowering its stake in stages after initially taking up 64%.
    The new operation takes its stake down from 26.7% to 11.7%.
    A merger between MPS and Banco BPM would give Italy a third big banking 'hub' after UniCredit and Intesa Sanpaolo. (ANSA).