UniCredit Shares Battered Ahead Of Rights Offering
UniCredit, the largest bank in Italy, has lost the investment market’s confidence. Its shares have dropped 45% in the last four days. The financial firm plans a rights offering. The capital is needed for the bank to meet regulatory balance…
UniCredit, the largest bank in Italy, has lost the investment market’s confidence. Its shares have dropped 45% in the last four days. The financial firm plans a rights offering. The capital is needed for the bank to meet regulatory balance sheet mandates.
Bloomberg reports that
“Every bank will be trying to avoid doing a rights issue even more now,” said Peter Braendle, a fund manager at Swisscanto Asset Management in Zurich. “The decline is really amazing. It doesn’t send a good signal.”
The news service adds
The bank is seeking buyers for new shares at a discounted price of 1.943 euros apiece. The offering, which runs through Jan. 27, was guaranteed by a group of 26 underwriters, led by Bank of America Corp. and Mediobanca SpA, which have agreed to buy any leftover stock.
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