The Mps raised a billion euros with the bond risk – The Republic

MILAN - The first leg of the reorganisation operation of the Monte dei Paschi closed at 16.00 hours, with the offer of the exchange bonds subordinated shares. According to rumors related to the early counts, the adhesions would have been for a nominal amount to little more than one billion euros, to 4,26 billion of securities that are the subject of the conversion. If this were the case (the press release should be out in the next few hours) we would be by the parts of the estimates that the bank of siena had made notes in the prospectus, and is equal to 1,057 billion, of adhesions, of which 420 have already been announced on the part of the investor General Insurance.
The exchange offer loans-actions was rather bumpy, and lasted just over four days: this is the preliminary result does not seem evil, and can hardly be taken as a pretext by the business banks of the consortium of recapitalisation to withdraw from the guarantee on the share issuance, which is the next stage of strengthening is on the agenda next week.
Of the 12 bond originating for approximately 5.3 billion euros in circulation, was, in fact, except for the Fresh 2008 of the value of a million dollars already raked up months ago by the speculative funds, and that they have not found the agreement with the bank of siena on a level of conversion into shares at 23 cents. Also the other subordinate type of “Fresh” (the acronym of the Floating Rate Equity-linked Subordinated Hybrid Preferred Securities, in practice, a title hybrid capital) issued in 2008, by about thirty million, was excluded from the offer, to the veto of a manager specialized, w hich holds 51% of the shares, and has voted against the price offered for the conversion into shares of the Mps. Are still in the game, and then 10 bond subordinated to approximately 4,26 billion), but we should talk about nine, and of the actual 2,19 billion nominal, because the title Upper tier II expires 2018 2,069 billion, the only one in the hands of the public at large, was, in fact, excluded from the operation. The Consob, in fact, dictated that the bank could not make a solicitation to customers minutes to deliver its full value in cash, provided that they then reinvestissero in new shares of the Mps, in order to contribute to strengthening by 5 billion in the pipeline. The non-adequacy of profiling within the meaning of the Mifid directive on the shares, in fact, cut out about 90% of the approximately 50 thousand carriers of the subject: without saying that many of them have preferred to sell it and cash out 60-70 cents in the past days, and forget about it.

The action of the banca toscana is however special at Piazza Affari, because the closing of the repurchase of subordinate tell the difference, how many shares to be found on the market with the increase. Jp Morgan and Mediobanca, who lead the syndicate are not yet formalized, would like to start from a level of participation by at least € 1.5 billion. Below these adhesions, and, even more, the threshold specified by the bank a billion, it could prove to be difficult to complete the rescue on the market, and may have to intervene in the State for the implementation of safety, with the involvement of the investor in the losses. The offer on bond subordinated covered securities for 4,26 billion.

A new trust on the Mps arrived yesterday evening by the French giant Axa, which, with the Monte dei Paschi has renewed for another ten years, until 2027, the partnership bancassicurativa signed in 2007. At the base of the renewal, quotes a note, “the excellent results of the alliance, which since 2007 has allowed the bank to consolidate and strengthen its presence in the insurance sector, life/damage and Axa to conquer a position of leadership in the Italian market, and then to further increase the diversification and the growth profile of the group”. The bank will continue “to distribute the products of the joint venture Axa-Mps, through the commercial network, composed of over 2000 branches, and to take advantage of the know-how of a leading international insurance, in terms of product innovation and quality services”.

Topics:

Mps

bond subordinated

Axa

bancassurance

Starring:

Mark Morelli