PREMAFIN, THE BOD DOES NOT MAKE ANY DECISION. MPS, TENSION RISES BETWEEN THE FOUNDATION AND CREDITORS
Black smoke in Premafin. After a six-hour board meeting, a note informed that: "Premafin's board has taken note of the proposal from Sator and Palladio and has agreed that it is not currently able to pass any resolution in light of the exclusivity clause with Unipol and of the communications received from certain creditors regarding the interest in renegotiating the exposure”. The press release explicitly refers to the reservations expressed by Unicredit, in its capacity as agent bank, in a letter in which clarifications are quickly requested on the integration plan with Unipol and, in particular, on the role of the convertee in the restructuring. The complaint to Consob presented by Palladio and Sator certainly weighed against the prospect of a hasty no. Reasons that advised not to make a decision immediately, as per Mediobanca's wishes.
In Piazza Affari, there had previously been increases for all the stocks involved in the merger, with the exception of Premafin. Fondiaria-Sai rose by 5,2%, Unipol gained 7,2%, and most of all Milano Assicurazioni, the subsidiary of Fon-Sai, ran, which rose by 19%. The company could sell, as part of the four-way merger, the subsidiary Previdente to the Axa group.
Italy is back on the front page of the financial media. But, unlike last autumn, when the Bel Paese was the unknown factor capable of making the global economy explode, today heavenly music is spreading from Piazza Affari for those who believed in the BTP last November-December when they sailed over 7,5% interest.
Yesterday, strengthened by the fuel arriving from the ECB, the purchases of the banks poured into the sovereign debt of the Eurozone: The yield of the ten-year BTP fell to 4,92%, 29 basis points less than on the eve. The spread with the German Bund narrowed to 305 points. The yield of the 2-year BTP fell to 1,68%, even 40 points less.
How much can this surprisingly large honeymoon hold up? Clouds are never lacking in the skies of global finance. First, the finance ministers of the eurozone, while approving Athens' moves, have still postponed the granting of loans to Greece. Meanwhile, Isda, which stands for the Institute of Swap and Derivatives Association, has effectively postponed the decision on the fate of the CDS linked to the Greek default. For now, the insurance does not take effect because we are faced with a "voluntary" restructuring. But if Athens, as it seems, proceeds with a single solution for all private creditors, with the strong assent of two thirds of the operators, then ISDA will review its decision: several billion dollars are at stake.
For now, however, from Wall Street to the Shanghai Stock Exchange, the Italian resurgence holds the scene, well illustrated by the closing indexes: at the end of the session, the FtseMib marks a progress of 2,9%. All positive, but much more distant, the other European Stock Exchanges: London +1%, Paris +1,3%, Frankfurt +1,2%.
In New York all indices rise: Dow Jones +0,22%. S&P +0,62%. NASDAQ +0,74%. Also in the USA to pull the race: JP Morgan and Bank of America rise by 1,8% thanks to the good news coming from European sovereign debt. General Motors posts an increase of 1,7% due to good sales results. The most significant note, perhaps, is the rebound of Gap +7,2%: the clothing chain is experiencing a great recovery, confirming the recovery in consumption. A modest decline for the Japanese Stock Exchange -0,16%. The drop in Shanghai is much more marked: -1,35%.
In Piazza Affari the i bank hikes. At the head of the list is Banco Popolare +10,5%, one of the institutions at risk of capital increases according to the standards of the EBA. Now, on the eve of the European authority's verdicts, the rise in the debt securities portfolio erases all fears.
Another major suspect is MontePaschi +5,5%, but the dispute between the Foundation's creditors and the institution has overshadowed the great rebound. At the origin there is the dispute between the creditors on how to distribute the proceeds of the expected transfer of up to 15% of the institute. The main part of the debt, equal to approximately 520 million, is in the hands of a pool of eleven banks, led by JP Morgan. Apart, Credit Suisse boasts around 300 million from the Foundation, while Mediobanca, which is also the entity's adviser for the sale, must have around 190 million and is also the owner of a small other credit stake in the other table.
The Foundation publicly urged creditors on Wednesday to release the stake held in pledge and frozen by the standstill, in order to have free hands for the sale negotiations. "There are no answers yet", Siena said. Meanwhile, the only concrete expressions of interest in the package remain those of Clessidra and Equinox, which are not allies. Equinox has expressed its willingness to acquire the entire package "in the framework of an industrial project". But with precise governance constraints. Clessidra, on the other hand, is interested in a package of 4,5-5% of the capital, but, in turn, has placed on the table, according to sources, both a price issue and governance issues.
For the rest, all the banks closed with a plus sign: Unicredit +5,7%, Intesa +4,4%, Pop.Milano +5,8%, Ubi +5,9%. Good increases also for asset management securities: Mediolanum +2,5%, Azimut +3,1%. On the insurance front, Generali made a big leap, gaining 4,1%.
Fiat gained 4,8%: the excellent data on sales of the subsidiary Chrysler (+41% on an annual basis) weigh more than yet another landslide in the Italian market. Car registrations in the month of February in Italy amounted to 130.661 vehicles, -18,94% on the year. The Fiat share stands at 28,31% from 28,73% in February 2011. Purchases also on Fiat Industrial +2,4%. Prysmian sharply up +4%, after Bank of America confirmed the buy recommendation and raised the target price to 13 euros from 17 euros. A shock also comes from Enel +3,2%. On the other hand, A2A -3,1%, fell after Alpiq's failed attempt to sell its 5%.
