Tuesday, May 3, 2016

Borsa No Popolare Vicenza: for small shareholders the final insult – Il Sole 24 Ore

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This article was published May 3, 2016 at 09:14 hours.
the last change is the May 3, 2016 at 9:24.

by now they will have made the call, but the 120 thousand small shareholders Popolare di Vicenza to injury you have already lost almost all the money, taste even now the joke of failure IPO. Outside Milan stock there is, for young members of the People’s historical Vicenza, the ability to easily sell shares even hyper-impaired. Outside Milan stock there for them even the hope that sooner or later some competitor concerned launches takeover bid. Outside Milan Stock Exchange, in short, the “old” members may have less worries of mind but also fewer protections. Whether non-listing may please the bottom of Atlas, and perhaps to other institutional investors who were ready to buy stocks, small shareholders are likely to be potential losers.

It is true that, thanks to the providential fund Atlas, was avoided the worst case scenario: if the Banca Popolare di Vicenza had not concluded the capital increase (without Atlante would certainly not closed), now the institute would probably bail-in with consequences disastrous for savers, the Veneto and the whole of Italy. But it is also true that failure to listing on the Stock Exchange from Vicenza institute, although it is the lesser of two evils, however, has consequences. Starting from small savers.

Small shareholders, large pain
The history of the “old” shareholders Popolare di Vicenza is known. Many of them – are the judicial reports to tell – have bought in the past actions of the bank because otherwise they would not have the funding they sought. Until a year ago (April 2015) their actions were worth EUR 62.5. Then, when the first adjustments began, it became impossible for them to sell them: since the bank was not listed on the stock exchange, there was in fact a liquid market on which to dump stocks that now hotdog. Savers are therefore almost all were “trapped” in this investment. Now that the shares are worth just 10 cents, for them, the loss is almost complete.

The question is whether the Popolare di Vicenza was landed in the coming days on the Piazza list Affairs, for them it would be better or worse? Obviously no one can know how they would behave those actions on the Stock Exchange. According to some observers, since the float would be very low, probably the title would have violent swings and insignificant volumes: in this sense – some think – maybe it was better for savers that the bank has remained outside the Milan Stock Exchange. There are those who believe that the title would, little by little, could appreciate. But since these are only hypotheses, we have to understand the practical consequences for savers.

The first is that the 120 thousand shareholders who have shares of Popolare di Vicenza once again will not have a real market for reselling them. The second consequence is that the savers 6 thousand (120 thousand of those) who had decided to exercise their right of first refusal and buy new shares in this capital increase, can no longer do it: since the listing has lapsed, has failed the ‘entire offering of shares. So these investors, who hoped with new actions to lower the book value and to recover something in perspective, even this right is deprived. Finally there is a third consequence: since the Popolare di Vicenza is out of the bag, is not subject to the tender offer rules. Moral: if one day someone wants to take over the bank (if it healed), could arrange with Atlas and give nothing to the small shareholders. It could launch a voluntary tender offer, of course, but is under no obligation. These are all rights of small savers who have failed with the failure IPO. Of course, nothing prevents Atlante to bring the bank at the Milan in the future. But this is a story yet to be written.

Large investors
For large shareholders who already had shares of Popolare di Vicenza, the speech is the same: they too they are deprived of the rights of minority shareholders of listed companies. For large (first of all Mediobanca) that instead had applied to buy shares in the bank this time, the non-quotation is perhaps a relief: since the bank is no longer on the stock market, they can no longer detect the actions. Even Mediobanca, which would buy 5% of Popolare di Vicenza, comes home empty-handed.

Finally, there is the bottom of Atlas, which now becomes a shareholder with 99.33% of the Vicenza bank. For this fund failure quote means, more immediately, to spend 120 million Euros more to detect the actions that would buy the other (few) investors: this means that the already meager assets of Atlas (4.2 billion), which in perspective it will also be used to detect non-performing loans from banks, tapering slightly. But for the system down failure listing, apart from that minimum inconvenience, it might actually be something positive. Atlas will in fact all the time to clean up the bank, without the pressure of the bag. And, when he wants to sell it or quotarla on the list, you may do so without suffering the raids of speculation which makes it more difficult. M.longo@ilsole24ore.com



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