Monte dei Paschi di Siena accelereted bookbuild or the burden-sharing, what is behind the deal with Qatar? – Corsera.it

the Monte dei Paschi di Siena accelereted bookbuild or the burden-sharing, what is behind the deal with Qatar?

Rome, 18 December 2016 Corsera.en by Matteo Corsini

the Monte dei Paschi di Siena ,the via tomorrow the share capital increase of 5 mliardi euro.Today, chimed in, ” Schmidt,an economic adviser to the German chancellor Angela Merkel,according to him, the bank of siena “should be saved from the creditors and not by taxpayers”. In fact, the rules for the rescue of the banks in the state of cris were just certain in Europe, and their violation would constitute a form of serious embarrassment for Italy, against Germany, which blows on the substantial respect of the rules.The failure of the capital increase of MPS, would drive inevitably the State to raise its stake in the bank,thus avoiding the burden sharing,which is the antechamber of the bail in.

(The burden sharing sharing the costs with the shareholders and the bondholders,the bail-in blows away everything,even the senior bonds and deposits above 100 thousand euros.)

But behind the capital increase, the accelereted bookbuild, hides probably ngoziazioni exaggerated for the purpose of granting those deep discounts on the price of the shares,as required by the institutional investors which have made their names in the course of the last few weeks,including the sovereign wealth fund of Qatar. The great invetitori would be only a great discount on the nominal price of the shares,but also this is practically impossible to determine that,if not in the course of the first day of the increase.The Monte dei Paschi di Siena is a strong risk of default ,as we all know circulate in his stomach about 160 billion of loans to be infected,which every year could deteriorate with the continuation of the economic crisis.How to do it? If we consider only the 4/5% of non-performing loans every year,this means that MPS will need further recapitalisation, only in the next 12/18 months and another, perhaps more massive, even by 10 billion euros in 2018.The next two years will be crucial for MPS crushed by the yoke of the infernal chains of the economic crisis.Almost all of these loans were granted to those who could actually repay them,loans and grants.The bank floats on the magma incadescente of a chasm from 320 thousand billion of the old lire,as four gigantic financial put together.A tsunami is capable of pushing the whole of the Italian system to the default.A monster with seven heads, a dragon that is staggering and dance on the fate of the italians.

CorSera.it dr.Matteo Corsini

Accelereted bookbuild.

(One of the advantages of the Accelerated Bookbuild is its speed. The shares are sold in a maximum of two days and without the need for any marketing campaign (as is the case for the Ipo). Another advantage is the placement to institutional investors and not directly on the market (which may not be able to in a short amount of time to absorb a quantity that is too high of shares).