Corrado Passera it is paraded. And has decided to withdraw its proposed offer for the bank the Monte dei Paschi di Siena. The reasons for the step back were contained in a letter from the content very hard in respect of the new vertices of thecredit institution, especially for "the attitude of total locking that the Bank has demonstrated in our comparisons. These are the words of the former minister of the economic Development to the board of directors and the board of statutory auditors of Mps. In the message, then, Fluke has also revealed the contents of its proposal, but not before he directed heavy criticism to th e modus operandi of the institute siena in the comparisons. "We have been denied the minimum conditions for the conduct of the ordinary course of face to make final and challenging this proposal," explained the former head of the company of Intesa Sanpaolo, who asked to proceed to a due diligence on the accounts of Mps. "We were told to wait for an information standard package of which to date we have not received nor is the index of the contents, nor the timing as you can get," wrote still Flounder, according to which "we have made requests for the 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. This closure explicit in relation to our proposal – he annotated the former exponent of the government – we think that is contrary to t he interest of the Bank and all its shareholders".
The letter: "Total resistance, and based on statements not supported by objective elements"
On the due diligence – you can still read the document – "we have made clear that we would not have wanted to take advantage of any exclusive information and all the insights granted to us could/should also be provided to other potential investors and to the market. We are required to follow a typical procedure of dual track. We simultaneously asked – continues the message – to be able to present theAuthority Surveillance european, our proposal can correct or supplement it. Also on this point the resistance was total, and always based on claims not proven by objective evidence and that are not found in experience previous". In particular, Passera has explained that "the Bank has told us that our proposal would not be robust enough to be presented to the Ecb. Given that this is a judgment which is the prerogative of the Ecb – said the former minister – let us remember that we are talking about 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 (which, as provided in our letter, we put at the disposal of the Bank once you have signed the confidentiality agreement) and the assumption of a commitment to guarantee the capital increase in option to current shareholders to 1-1,5 billion". "The Bank explained Passera told us that the Ecb has approved only the current setting, and that our proposal of a capital increase immediate $ 3.5 billion would not be taken in the account. As said, such a judgment is the prerogative of the Ecb and appears inappropriate for the Bank to speak in his na me, excluding the Ecb can even examine other alternatives."
The critics: "a plan is needed for the redevelopment and relaunch a more robust"
After you have explained what was the attitude of closure, the x head of the company of Banca Intesa has X-rayed the actions of the top management of the Mps, not sparing critical, sometimes even poisonous. "We are convinced that the Plan of reorganisation and relaunch of the Bank (not 'save' as too often is defined) to attract investors significant must be more 'robust' than the one presented in recent days," wrote Corrado Passera, noting that "we do not consider ambitious enough to aim for a Cost/Income ratio of 55% between three years (the same figure for the first half of 2016) and we do not consider credible a cost of credit 'dive' as the one expected (even 55bps) not even moving from the start to suffering more the 4.4 billion UTP as we pr oposed. Similar considerations could be made on the cost of the funding. The banking sector, moreover, is changing profoundly, ” he added, Passera – and the Plan presented takes into account, according to us, only partially of this discontinuity strategic".
The role of the new shareholders in the proposal of Plaice
"We are convinced that the current shareholders should play a greater role than is currently proposed in the draft of the Bank – in-law document – If you proceed with the conversion of the subordinated to the totalled planned and with a Book Building concentrated in certain Anchor investor, the current shareholders would be substantially zeroed. We propose, instead, to allocate a significant portion of the capital increase – 1-1,5 billion – on option to existing shareholders to give them the opportunity to participate in the remarkable appreciation of the bank which we consider to be possible. We are convinced, he said again Flounder – that the intrinsic value of the Bad Bank which could give life, should remain to the shareholders, old and new. The floor of the Bank provides for the a llocation of the junior securities of the vehicle only to current members and the sale to third parties ofservicing unit', making the transaction less attractive to new shareholders that for the current ones. The portfolio from securitize and the so-called 'servicing unit can create a leading operator in its sector, and its value should not, according to us, scattered outside the'shareholding".
"with regard To the mode of securitisation, we are convinced that negoziandola immediately after the capital increase, and by building it in multiple vehicles (distinguished by type of asset, counterparty, geography), you could get the best results at a lower cost and with less risk for the Bank". "We are convinced – emphasizes the message addressed to the board of directors and board of statutory auditors – a year of Liability Management can contribute to the success of the overall operation and we were ready to discuss our predictions for both purchase and conversion of subordinated bonds. It difficult to evaluate the alternative proposals that the Bank offers due to their vagueness and the disorder only on this subject in the last few weeks on average. This was certainly excessive not to provide for any LME project, chosen in July, just as excessive appear to be the amounts conversion that we hear about today. The effects of conversions so extensive, – that, from what is said to involve the retail segment, could have a destabilising effect on the shareholding structure, on the prices of the stock exchange and also on the customers. Certainly you should think of all of the components of the Total Capital Ratio". "We believe – continues the letter – that the operation of ripatrimonializzazione may be made with charges to the Bank below for several hundreds of millions and pointing out at the same time, to shareholders, old and new, a return to more satisfactory. And then a more probable success of the overall project. the Work in parallel on two different options would have been less risky to bet all your cards on a single option that, on the other hand, in the last three months does not seem to have led to any certainty of the result. Also, from the first day we say tha t we could (today we say 'could') put together the best of both settings in the interest of the bank, all its shareholders and of the Italian system. The market 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".
