The modification of the convertand has been approved. After four hours and after the small bondholders tried to do battle, the meeting gave the go-ahead for the early conversion of the 2009-2013 bond and for the reduction of the minimum conversion price from 6 to 2,71 euros with a majority of the 53,7% out of 56,4%. The title runs up by 3,80% against the 1,10% of the list, leading the rebound of bank shares.
CONSUMER ASSOCIATIONS ON THE FOOT OF WAR
The restructuring operation of the convertible has the objective of strengthening equity and repaying the Tremonti bonds in advance, by 31 December 2012. But once again it is the small shareholders who are paying the price, or rather in this case the 15 bondholders who risk losing between 50 and 70% of their money. And consumer associations do not intend to bow their heads. Federconsumatori has announced its intention to promote a class action based on the bank's "accurate responsibilities" "in the placement of securities in the usual park of oxen made up of savers and their families". The reference goes to the sanctions already inflicted by Consob on some BPM executives for the methods of subscription to retail customers, a matter on which the Court of Milan is also investigating: after the cold reception of the convertible bond by the institutions, the bond was in fact placed to private individuals with "questionable" criteria that would have overlooked the riskiness of the instrument with respect to the real risk profile of the buyers.
She also took to the field Altroconsumo which filed a complaint with Consob "to turn the spotlight back on the forced change of the rules of the game, decided unequivocally while the game is still in progress". According to the association, waiting for the natural expiry of the convertible would have limited the losses for the bondholders.
A NEW MANAGING DIRECTOR IS URGENTLY NEEDED
A move that wears out the relationship of trust between the institution that has always been strongly rooted in the territory and customers who have found themselves in hand, without knowing it, high-risk securities and now savings and liquidation are at stake. The capital increase concluded with an unexpected happy ending, the new Bpm branded Bonomi (which with Investindustrial has risen to 9%) led by a new dual governance mechanism introduced to stem the influence of trade unions, will have to proceed as soon as possible to giving herself a new guide who will ferry her out of the shallows of the markets and personal ones. The choice is expected for January.
In the running for the position of managing director there is a shortlist of five names, two of which are in pole position: the general manager of the Banco di Napoli, Joseph Chestnut; the managing director of Banca del Sud, Peter Montani; Giampiero Maioli CEO of Cariparma, Gianemilio Osculati former McKinsey and now number one of Intesa Vita; Maurice of Maio, last managing director of Popolare di Lodi. These are all candidates from outside the group, according to the auspices moved by Bank of Italy which aims to create a clear separation between current and past management.
