UniCredit, Italy talks over Banca Monte dei Paschi sale collapse

Talks between the Italian government and UniCredit SpA over the sale of Banca Monte dei Paschi di Siena SpA collapsed, dealing a blow to Prime Minister Mario Draghi’s efforts to end the bank’s troubles and raising questions about how the government will exit its stake by year’s-end.

The hurdles meant the two sides couldn’t take forward a July agreement that the deal would be capital neutral for UniCredit and help the bank generate higher profit, sources said.