Shares in Italian bank Monte Paschi rally on new plan

Shares in troubled Italian bank Monte dei Paschi di Siena have shot up 22 percent ahead of a new plan to be presented by CEO Marco Morelli.

The plan being discussed by the board Monday is expected to pave the way for the 5 billion euro ($5.45 billion) recapitalization announced after the bank, Italy's third-largest lender, was the worst-performer in a stress test of EU banks last summer.

Shares shot up to 0.33 cents ($0.36), the highest level since July, following a suspension for excessive gains. News agency ANSA reported that 154 million shares, about 5.2 percent of the bank's capital, exchanged hands in a two-hour period.

Morelli will hold a conference call Tuesday on the plan to help relieve the bank of some 27 billion euros in non-performing loans.