Shares up as dei Paschi cuts more staff

The world's oldest bank, Italian Monte dei Paschi has seen shares surge following its announcement that it's cutting another 3,360 jobs, in order to receive €4.1bn in European aid.

The bank's experience of a "more challenging macroeconomic scenario than the one initially expected" sees it evoke a restructuring plan as it continues to take steps to avoid nationalisation. Yesterday, it announced that, by 2017, it will shed 8,000 staff and €440m reduction in administrative costs, in addition to increasing capital with a €2.5bn share sale in 2014.

Chairman Alessandro Profumo said that the restructuring plan preserves the bank's strategic priorities whilst "allow[ing] [us] to accelerate the Bank's relaunch through capital strengthening and early repayment of the new Financial instruments, in the best interest of all our stakeholders".