Corrado Passera withdraws its proposal to Mps as “a result of the attitude of closure of the explicit of the Bank.” With a letter sent to the board of directors and the board of statutory auditors of Mps Flounder has communicated the decision to withdraw its proposal. “Three weeks from the meeting still was not able to start any depth – writes Plaice in the letter – ours was a serious proposal of a reorganisation and re-launch, which would have given a central role to existing shareholders. We have been denied the minimum conditions to proceed.” Flounder explains that he has his “primary investors that had expressed interest the official already for 2 billion”.
“me interest in primary investors already for 2 billion”
In the letter Plaice defends his proposal of a Business Plan, very detailed (which we would have willingly submitted, but was not given the opportunity’); letters of official interest from major international investors for approximately € 2 billion and the assumption of a commitment to guarantee the capital increase in option to current shareholders for 1-1,5 billion” and stresses the attitude of closure of the bank.
“The correspondence between us and the bank of last weeks show we did usual, and in line with the market practice for transactions of this kind, while the bank has responded by posing the difficult conditions, and by consuming half of the already short time available to” highlight Plaice, stating that in order to arrive at a final proposal and demanding prior to the meeting, “we asked to be able to validate with the Bank’s top management, our working hypothesis at the moment based on public data and to be able to deepen some of the fundamental issues for any investor, first of all, the quality of the credit portfolio”.
and Then the letter goes on to list a series of closed attitudes. With regard to the due diligence, Flounder explains that, having “made clear that we would not have wanted to take advantage of any exclusive information” by requesting to follow a typical procedure of the dual track. We were told to wait for an information package standard of which to date we have not received neither the table of contents, nor the timing in order to use them”. And, he continues, “there has been imposed a new prohibition, incomprehensible in a M&A: we would not have been able to share that information with our investors, even if made known to the bank and subjected to the same our bond of confidentiality”.
And Plaice invokes the “total resistance” of the “request to submit to the Authority of the european supervisor, our proposal to eventually be able to correct it or to integrate it into” opposing a judgment of “inappropriate” according to which “our proposal would not be robust enough to be presented to the Ecb”.
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“Proposed two times in a friendly way, sorry answer”
Plaice in the letter speaks of “the twenty days spent in unproductive, with the only effect that is harmful, to us and to the Bank being deprived of the opportunity to receive a final offer and demanding that he would, in the end, could accept or reject”.
For Plaice, the “rehabilitation and revitalisation of the Mps must start from the convinced commitment of a group of solid investors ‘guarantee’ from the very beginning the whole plan of renewal and revitalisation of the bank: this is not according to us, a normal capital increase, and not even a normal Book Building, but a complete redesign of the Bank from its shareholders stable” with “a greater role for existing shareholders”.
According to Passera also “the market of the Stock has been unequivocal in demonstrating interest for our proposal, but even this evidence did not convince the Bank to give us a chance to complete it”. The letter to the board of directors closes, and then, to the regret of the entrepreneur: “The bank and its board of directors have decided to stake everything on a single alternative, and I hope, in the interest not only of the Bank but of the whole Italy, that this strategy is somewhat risky, ports, however, the hoped-for results. We proposed to the bank and to you, the members of the board of directors twice, always in a constructive and friendly, to contribute to finding solutions on a dossier that is so important and delicate. The response of the Bank was unequivocal and we are very sorry”.
(Il Sole 24 Ore Radiocor Plus)
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