Published: January 4, 2012
Shares fall as Italian bank announces details of discounted €7.5bn deal.
Italy’s UniCredit has announced the details of a rights offer to existing shareholders that it hopes will raise almost €7.5bn (US$9.8bn). However, the steep discount in the deal’s pricing has seen the bank’s share price drop sharply.
The bank’s shareholders will be offered two new shares for every one they already hold, priced at €1.943 each, a 43% discount. Announcing the deal, the bank said shareholders had so far agreed to take up 24% of the new shares.
The bank’s shares on the Milan exchange fell by as much as 10% following details of the offering and, at one stage, trading was suspended. Following recent stress tests, The European Banking Authority estimates that UniCredit faces a capital shortfall of almost €8bn.
BofA Merrill Lynch, Mediobanca and UniCredit Corporate & Investment Banking are underwriting the rights issue as joint global coordinators and joint bookrunners.
Banca IMI, BNP Paribas, Credit Suisse, Deutsche Bank, HSBC, JP Morgan, Société Générale and UBS will act as joint bookrunners, with ING, Nomura, RBC, RBS and Santander as co-bookrunners.
BBVA, Credit Agricole CIB, Mizuho International and MPS Capital Services are co-lead managers and Banca Akros, Banca Aletti & C., Banca Carige, Equita SIM, Intermonte, Investec Bank and Keefe, Bruyette & Woods are co-managers.