Banca Montedei Paschi di Siena SpA said Sept. 26 that its board ofdirectors is considering launching a voluntary debt-for-equity exchange offeras part of its €5 billion recapitalization plan.

"Considering the fast market evolution and preliminaryindications received by institutional investors, detailed analysis have beenstarted, inter alia, to incorporate in the transaction structure the possibilityof including a liability management exercise," the bank said, adding thatthe plan is still under review.

The bank's business plan is expected to be approved by theboard Oct. 24 and a shareholders' meeting scheduled by November-end.