Commerzbank AG, Germany’s second- biggest bank, said it will sell 2.5 billion euros ($3.3 billion) of shares to repay the government and insurer Allianz SE. The company slumped the most since November 2011.
Europe’s drive to rescue Cyprus risks undermining a region-wide deposit guarantee plan, a key tenet in the battle to contain the debt crisis, and casts doubt on the ability of the weakest lenders to retain deposits.
Banca Monte dei Paschi di Siena SpA, the Italian bank engulfed by probes of its former managers, will take a 730 million-euro ($987 million) hit to its assets after accounting for structured deals that hid earlier losses.
OAO Sberbank’s depositary receipts will rise to a premium of as much as 4 percent over the lender’s Russian shares as foreigners seek the securities after a limit on converting stock was reached, according to VTB Capital.
Mario Monti’s caretaker government is considering postponing a 3.9 billion-euro ($5.1 billion) bailout for Banca Monte dei Paschi di Siena SpA, leaving the final decision on the payout to the next government, two people familiar with the discussions said.