the From one side to the plan outlined by JP Morgan and Mediobanca, and revised by the new to Mark Morelli, on the other, the alternative proposal by Corrado Passera. The board of directors of Monte dei Paschi di Siena decides not to close the door to anyone of the two: the bank, in fact, go ahead with the original plan established last July, at least with regard to the recapitalisation and the sale of the sufferings, but does not close the door to the proposal advanced by the Plaice, as explained in the note issued to the markets closed, after that today during the board of directors the title of Mps has concluded the trading session, gaining nearly 13%.
The meeting, presided over by the chairman resigning Massimo Tononi, therefore, has examined the industrial plan (approved on October 24th) and confirmed the timing of the shareholders of the bank by the end of the month of November, when it will also appointed the new president: “The Board of Directors of Banca Monte dei Paschi di Siena S.p.A., which met today under the chairmanship of Massimo Tononi – reads the note -, he went on to further study in relation to the contents of the industrial plan, which will be approved the next 24 October. In addition, the Board of Directors, confirmed the firm intention to continue the implementation of the operation of the recapitalization and the related transfer of the sufferings of the previously communicated to the market, took note of the update by the chief executive officer and advisors, in the matter of the proposed non-binding received from Dr. Passera 13 last October.”
What is certain is that in Siena, the expected climate for the next few weeks will be glowing. Just like it happened today at Piazza Affari, where the actions of the Mps have staged a real exploit. The proposal submitted by the Plaice and examined today by the board of directors of Mps has in fact triggered a a real rally of the bank of siena on the Ftse Mib: the title has been hit by a rain of purchases (the volumes have been very high) while reconnecting to the psychological threshold of 20 cents per share (0,195€).
The enthusiasm of investors is linked above all to the fact that the tranches of cool means required to the market from the times of the former minister may be equal to or slightly less than one billion euros, a figure markedly lower than the alternative hypothesis, prepared by JP Morgan.
Mps: the plan Corrado Passera
The Council today began to take into account the details of the plan presented by the former world number one, Intesa Sanpaolo and examined by Marco Morelli and manager of Lazard. A meeting preceded by various meetings with the advisor who had the opportunity to get an idea of the operation.
Plaice, tonight in the Consob to explain its plan to the Commission this time decided not to leave anything to chance. After the emphatic No assigned last July by the former vertices (three months ago, the ad was still Fabrizio Viola and Tononi had not yet resigned from the president), the former head of the Put has decided to present a detailed project, very different from the previous one and, above all, similar to the proposal of JP Morgan and Mediobanca on which the managing director has concentrated in the course of the last few weeks.
A proposal, "friendly", which does not require any change at the top of the bank of siena, and that therefore seeks to avoid the clash, focusing on the reduction of the amount of the capital increase coming in the next few months.
The maneuver of Plaice, forwarded on time to the Government and be examined today by the board of directors, part of a letter of intent of some institutional investors (including Bc Partners, Atlas and Warburg Pincus.), whose input would ensure the arrival of 2.5 billion euros. There would be, however, one condition: the operation would be conditioned by the outcome of a due diligence on the Monte dei Paschi, which would lead to 1-1,5 billion, the requirement of new capital and should be realized in the span of a few weeks, enabling the bank to comply with the agreed deadlines with the european central bank.
To the 2.5 billion invested by institutional we would add a further one billion euro, expected as the increase in option to current shareholders, which would avoid the now-famous operation of conversion of the bonds subordinated shares, as provided for by the plan of JP Morgan.
Like the latter, the proposal of the former number one of the Agreement provides for the disposal of Non-Performing Loans (Npl) through the creation of a bad bank, which, however, will be awarded with an amount of suffering and more high, between 31 and 32 billion euros, compared to the 27.7 provided by the plan A. in Addition, the "transfer” would occur only after the capital increase, and not at the same time, for the purpose of distributing the shares (i.e. the junior tranche of the securities securitised) of the Spv (the special purpose vehicle for the securitisation) to all new shareholders of the Mount, and not the current, as provided for by the plan, Jp Morgan.
MPS: the plan of JP Morgan
To emphasize that the plan prepared by JP Morgan and Mediobanca, in the course of weeks, has suffered an important reduction of the share capital increase request to the investors. Initially, in fact, he spoke of a recapitalisation amounting to € 5 billion for the purpose of responding to requests arriving from Europe. Subsequently, the american bank has sought to reduce the amount of the increase to 1,5-2 billion euro, thanks to the entry of the anchor investor and, above all, to the offering of voluntary conversion of the bonds into shares to the holders of the bonds are subordinate to it. With regard to the Npl, as I said earlier, the plan provides for the disposal of an amount of suffering equal to 27.7 billion euros.
In this case, there would be even the ok of the Treasury, the leading shareholder of Mps, and of the European Central Bank, which is something that, instead, the proposal submitted by Corrado Passera still can not count.
Mps: the redundancies
The floor on which they work for the vertices of the Monte dei Paschi includes not only the search of new capital to work out the kinks of financial urgent matters. On the other hand the management there is the node of the redundancies: in dance there are 3,000 outputs, of which 1,400 have already been identified from the old plan and 1,600 added in the new.
The time to realize the complex of measures that should bring the bank of siena out of the shallows are still very tight. One week from today, Monday, October 24, the board will be called to approve the operation illustrated from To Morelli last Friday. And the complicated round of operations aimed at the recapitalisation will have to pass the screening of the extraordinary general meeting that would be held on the 18th of November.
In the same occasion, the shareholders will be called to vote on the appointment of the new chairman of the Mountain, following the resignation of Tononi. And it is not said, at this point, that the pole position – in the list of names to consider – lest the name of Plaice in spite of the cohabitation with Morelli is not the foreboding easy for both of us.
No comments:
Post a Comment