Fintech takes on 135 mln euro commitment in Monte Paschi cash call

MILAN, May 23 (Reuters) - Fintech Advisory, a leading shareholder in Monte dei Paschi di Siena, has committed to buy unsold shares in the Italian bank's 3 billion euro ($3.3 billion) cash call for up to 135 million euros, a document showed.

Italy's third-largest bank on Monday launches its second cash call in less than a year to plug a capital shortfall unveiled by banking health checks across Europe and complete repayment of state aid.

Fintech Advisory holds a 4.5 percent stake in Monte dei Paschi. The U.S. fund headed by Mexican billionaire David Martinez bought its stake ahead of last year's 5 billion euro capital increase and took part in it.

Both capital raising operations are highly dilutive. Shareholders who do not buy in the upcoming share issue will see their stake diluted by 91 percent.

Fintech has signed a sub-underwriting agreement with the global coordinator of the group of banks which are guaranteeing the rights issue for up to 135 million euros, the supplement to the cash call prospects published on Friday on the bank's website showed.

Monte Paschi, which has a stock market value of 2.5 billion euros, is selling 2.56 billion new shares at 1.17 euros apiece, or a 38.9 percent discount to the theoretical ex-rights price (TERP) of the stock. The offer is for 10 new shares for every existing share held.

Among Monte Paschi's leading shareholders, French insurer AXA has said it would buy into the share issue to keep its 3.7 percent stake unchanged.

The chairman of the Monte dei Paschi foundation, which used to control the Tuscan bank and now holds a 2.5 percent stake, said on Saturday its decision on whether to take part in the capital increase would be announced Monday or Tuesday. ($1 = 0.9079 euros) (Reporting by Valentina Za; Editing by David Holmes)