Monte dei Paschi di Siena tries to keep €5bn rescue plan alive

Italy's third largest bank seeks to avoid government bailout with debt-for-equity swap offer to retail investors

Executives at Monte dei Paschi di Siena (MPS) are fighting to salvage a multibillion-euro rescue by private investors in a frantic attempt to prop up the bank.

In a statement released after a board meeting on Sunday, the world's oldest bank said it would forge ahead with a debt-for-equity swap offer for tens of thousands of retail investors. The offer still requires regulatory approval. If MPS manages to convince investors to go along with the plan, it would help it avoid a government bailout by Italy, which would have far-reaching economic and political consequences.

Related: Monte Dei Paschi bailout: what you need to know - the Guardian briefing