Mps, the minute-by-minute capital increase
Because the capital increase of Mps started with a lot of uncertainty. All the details. Emanuela Rossi's article
Montepaschi's capital increase starts with great uncertainty on the stock market. In fact, on the day in which the path for the rehabilitation of the ancient Sienese bank begins, the stock is falling and the option rights collapse. It should be remembered that on Friday MPS had left 42% on the ground, bringing the performance in the last two sessions to -61.3%.
Two "warnings" were also delivered to Siena on Friday. Consob has in fact highlighted that the increase – which has "characteristics of strong dilution" – carries with it "the risk that during the period of the offer in option of the new shares there will be a strong volatility in the price of the issuer's shares, including an overestimation of the market price compared to its theoretical value "; the ECB instead stated that – even with the recapitalization – MPS would present a capital gap compared to the average of Italian and foreign banks, which “could represent a possible obstacle to future mergers with an industrial partner”.
THE CAPITAL INCREASE
The recapitalization of 2.5 billion euros – announced the Rocca itself last Friday – will be "fully guaranteed". The bank has signed guarantee agreements for a maximum amount of 857 million euros, of which 807 million with the guarantee consortium composed of Mediobanca, Bank of America, Credit Suisse, Citi, Sch, Barclays, SocGen and Stifel – severally and without the bond of solidarity. Another 50 million, on the other hand, will come from the Algebris fund. The Treasury, owner of 64.23% of the capital, will provide 1.606 billion euros while the commitments of third-party investors amount to 37 million.
Today the news that Axa will participate in the capital increase of Mps for an amount up to 200 million euros. "The exact final amount will depend on investor demand" told Ansa a spokesman for the French insurance company which was identified among the sub-underwriters, the underwriting syndicate has turned over half of the unexercised risk. load.
HOW IS IT GOING ON THE STOCK EXCHANGE
As announced on Friday at the end of the session, Mps shares today resumed trading with a reference price of € 2.063, due to the spin-off of the option right, which is negotiated separately. The starting price of the right, which allows 374 new securities to be subscribed for every three held, was set at € 7.837.
At the start the rights and the stock could not make a price, later the stock was traded but in the middle of the morning it was suspended due to excess volatility with a theoretical rise that exceeded 16%. Same script for rights after a theoretical 36% drop. At mid-session the stock travels to -2.6% and rights show a 90% decline
THE CALENDAR OF THE OPERATION
The recapitalization will end on November 3. The option rights will be negotiable on Piazza Affari until 25 October and can be exercised until 31 October. Unsubscribed rights, on the other hand, will be offered on the Stock Exchange, through the auction of the unsubscribed, on 1 and 2 November and their exercise must take place by 3 November.
THE DOUBTS OF SILEONI
Meanwhile, on the very day of the start of the increase, Lando Maria Sileoni, general secretary of Fabi, the first credit union, does not mince words. “The Treasury must sell Monte dei Paschi di Siena within the next two years, by 2024. But long before that deadline it will have to look for a partner or other partners. During this type of operation, there are those who, as usual, expect or think that Mps can be bought with one euro, as happened in June 2017 with the two Venetian banks "he said interviewed to" Sportello Italia "on Radio One Rai. "Or, at this moment, there are those who intend to act as the white knight – he added -: two or three banks could take over Montepaschi, above all to cover their own capital shortage or coverage deficit. on impaired loans, trying to make them look like Mps ”.
As for the recapitalization, the operation "will be a thriller until the last second" because "in the agreement with the underwriting syndicate there are some important contractual clauses that allow the agreement to be terminated, in fact, at any time" , such as that relating to the "emergence or intensification of acts of hostility or acts of terrorism or other calamities" or that relating to a "negative change in exchange rates, in Italian and international politics, in Italian and international financial markets".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/mps-aumento-capitale-incertezza/ on Mon, 17 Oct 2022 13:52:31 +0000.