The bite, not the first, is bitter. But members of the Mountain, including small, yesterday, approved the new maxi-increased from five billion, needed to cover the spin-off of 27 billion, of suffering, and then to bring regulatory capital above the threshold of safety established by the Ecb. Elected Alessandro Falciai to the presidency, while Massimo Egidi enters the board in place of Massimo Tononi.
The game of the hedge on the conversion
The quorum suffered
In the assembly of the river, started at 9.30 am and ended shortly before 20, most of the result – at the end all the seven resolutions were passed with more than 90% of the share capital in favor of the uncertainty was on the quorum: as this extraordinary session, was served by the 20%, at the end when he is voted into the hall there was a little less than 23. In practice, the danger of an idle (and a potential resolution is almost immediate), course really: in the end, was avoided thanks to the presence of the Treasure – which in fact is not irrelevant, has also voted – with its 4%, is a hard core now reduced to 7-8% and a share of foreign institutional equal to 6%, investors in long-term that, despite everything, they decided to stay in the capital, and now there is expected to assess the participation of the increase. Equally important, and somewhat surprising in view of the contribution of small shareholders, for the marginal ization with the rise: the solicitation of proxies, Morrow Associates, together with the tam tam in the network, has led to 13 thousand appointments made by the three members, with a contribution to a quorum of more than 7 percentage points.
entrance fee
received the support of the members, the Mount now, if you can play on the market. Looking for new members in a manoeuvre extremely dilutive to the current ones: the proof will be in the price range for the increase, probably a few cents per share, decided by the board of directors in the evening after the meeting and that it should be put in black and white in the prospectus for the conversion of the bond is expected for today. Yes, because as he said yesterday, ceo Mark Morelli, from Monday and until Friday evening opens the window to convert deibond, by which the bank formally is expected to raise 1.04 billion, but essentially hopes to do more. Also because “the price is attractive,” she said to Morelli at the end of the meeting. A pivot may be General, ready to evaluate the conversion of 400 million of bonds that has in the stomach, with which “so far we have not had contacts”, but not only that: “The appeal of the bank w ill be remarkable for all the institutional, Italian but also foreign,” she said Falciai meeting with journalists.
Qatar towards the end of the due diligence
And here we arrive at the increase. That remains the most delicate part of the operation, amount and timing: the subscription, in fact, will start on 7-8 December, immediately after the referendum, on 4 December. “For us, our recapitalization is completely dropped from the vote,” he said yesterday Morelli, but on the 5th of December is already on the agenda before the call between the banks of the guarantee consortium, ready to remove the canopy if on the market there should be chaos. As well, the Foundation, now reduced to 0.7%, pointing to wait for the outcome of the referendum before deciding on the subscription, so there is no wonder if even Qatar, where the sovereign wealth fund remains the natural candidate for the role of a new reference shareholder, will do the same.
The only plan B is the intervention of the State
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plan B
In case of sinking, “we’re going to Frankfurt, and we will evaluate how to proceed with Monitoring”, he said Morelli. It is hard to avoid the resolution of the bank and, even though the “bail-in is a scenario that we have not taken into account”, in the written response provided to a member are contained the effects numeric: liabilities subject to a possible bail-in before the intervention of the resolution Fund (with an estimated amount of 8 billion) would be equivalent to 13 billion, in a complex of liabilities that are potentially interested in of € 64.8 billion; and whereas, the equity capital of the bank totals nearly 9 billion, to the holders of the bonds would have to contribute about $ 4 billion.
You will see. Also because yesterday, despite the understandable outbursts of the many small members, on the possibilities of success of the operation it caught a mood vaguely more positive than the past few weeks. Feelings, perhaps, that, however, seems to perceive the market, where the subordinates are back up and on the Stock exchange, the bank has recovered 3.3% in contrast with the sector.
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