STOCKS NEWS EUROPE-Monte Paschi up ahead of key board meeting

Shares in Monte dei Paschi (Milan: BMPS.MI - news) rise as much as 2.9 percent ahead of a key board meeting where the top executives of the troubled Italian bank are expected to announce their decision to stay on, despite a shareholder vote that sank their plan to launch a cash call in January.

Traders also mention the sale of a 551 million euro loan portfolio by the bank's consumer credit unit on Monday as another factor driving the shares higher.

"The market likes the idea that (Chairman Alessandro) Profumo and (Chief Executive Fabrizio) Viola could remain at the bank," one trader says.

The two executives had threatened to resign after shareholders led by the top investor in Monte Paschi voted at the end of December to delay until at least mid-May a planned 3-billion euro rights issue the bank needs to carry out.

But investment bankers close to the matter said on Monday Profumo and Viola were expected to stay on. Economy Minister Fabrizio Saccomany was quoted as saying at a meeting with union leaders on Monday that there would be no "radical move" at Tuesday's board meeting.

Reuters messaging rm://claudia.cristoferi.thomsonreuters.com@reuters.net