UniCredit seeks €13bn from investors for restructure plan
Funding is not for survival but the bank had the slimmest buffer among big banks in region’s latest health tests
Milan — After Banca Monte dei Paschi di Siena failed to raise funds on the market, attention now turns to a much bigger cash call by UniCredit. Italy’s largest bank is seeking investor backing on Thursday for a €13bn rights offer — almost as much as its market value — to carry out a turnaround plan under CEO Jean Pierre Mustier. Shareholders meeting in Rome also will be asked to approve the conversion of every 10 shares into one new share after the stock dropped more than 45% in 2017. Monte Paschi’s failed share sale and ensuing government bail-out in December have revived doubts about Italian banks and their ability to deal with bad debt. Like its smaller rival, UniCredit plans to use most of the cash to absorb losses on loans that the bank is selling at a discount. Unlike Monte Paschi, which tried to raise about €5bn, UniCredit is a profitable lender that is seeking funding for a cleanup, not for survival. "UniCredit’s new business plan tackles the right concerns and represents a ...
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