The first option is that they too can be given the opportunity to convert on a voluntary basis the bonds into shares. Mps have been given this opportunity to the institutional investors from 28 November to 2 December, receiving the acceptances for a total value of more than a billion euros. To encourage this road the institute has provided the repayment of bonds at a very attractive price: 100% of the nominal value of the bond "Tier 2".
Given that the retail is in the hands of bond "Tier 2" this hypothesis would lead them to recover, if the capital increase to go into port for a private road, the loss of 50% so far accumulated on the value of the stock (at Friday’s closing, the bond with a maturity of 2018 – the largest subject in the hands of the retail – rates were 50 while at the counter, at issue, had been sold to 100). Then these would still be "forced" by the plan to purchase the new shares of the Mps issued for the capital increase.
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To pursue this path requires two conditions: 1) the capital increase of Mps is carried out by private investors and not by the State; (2) Consob authorises the conversion of bonds into shares, also to the retail segment, even if their risk profiles (as expected by the Mifid regulation) can not be established the ability to buy shares.
the second option requires The direct intervention of the State and would be triggered in the event of the failure of "plan A". In this case, the bonds are subordinated, they would still be converted into shares, but not at a price that is "beneficial" such as the one offered in the offering of voluntary conversion. The mandatory conversion would occur at a price determined by the market after the intervention of the State to guarantee the amount of the capital increase inoptato. Both of these options do not apply to the holders of the bonds are "senior" that they are not engaged in the operations of capital increase.
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