The offer of Camfin senior unsecured convertible (exchangeable) bonds in Pirelli ordinary shares for 150 million euros was launched this morning and closed very quickly, meeting strong demand.
“The market has been very receptive. Everything was closed in less than an hour,” explains a source close to the operation.
The offer was announced this morning by the company after the go-ahead from the board of directors last night with the Malacalzas voting against.
With the amount of the operation, wanted by Marco Tronchetti Provera, Camfin can repay the tranche of the 132,4 million euro loan maturing at the end of the year, while the remaining part will be used "to support solutions involving interventions of a financial nature at favor of Prelios,” explains the note.
The bond is at a fixed rate with an annual coupon between 5,25% and 6% and the initial implicit conversion price will be set at a premium between 27,5% and 32,5% of the weighted average price for volumes of Pirelli shares registered on the Stock Exchange in the period between the launch and the determination of the final terms of the issue.
The bonds are issued at 100% of the nominal value, equal to 100.000 euros each. Except in the case of conversion, early redemption or repurchase and cancellation, they will be reimbursed at par on 26 October 2017.
The issuer (CAM 2012, wholly controlled by Camfin), in order to acquire adequate capital, will hold in an escrow account for the entire duration of the bond loan over 27,8 million ordinary shares of Pirelli, not part of the syndicate agreement , equal to approximately 5,85% of Bicocca's ordinary share capital.
The placement of the bond was handled by Banca IMI, BNP Paribas and UniCredit Bank AG as joint bookrunners and joint lead managers.
The settlement date is scheduled for October 26. Admission to listing on the Open Market segment of the Frankfurt Stock Exchange will be requested by 26 November.
In Piazza Affari at 11,40 Camfin rises by approximately 4% to 0,51 euro, while Pirelli loses 1,98% to 8,675 euro.
In the note, Camfin explains that it cannot exclude the possibility that new legal actions may be initiated by the Malacalza family, but underlines that it does not foresee that "the legal action initiated by the members of the Camfin Board of Directors designated by Malacalza Investimenti and/or any other possible actions may jeopardize the operation".
Vittorio and Davide Malacalza, together with the other representative of Malcalza Investimenti (12,1% shareholder of Camfin), namely Antonio Caselli, voted yesterday against the issue of the bond, after the legal action initiated by the three on 9 October for ask for the invalidity of the resolutions of August 10 and 29 on the bond.
USA, EMPLOYMENT IMPROVES BUT APPLE MISSES.
Macro data confirm that the US economy is improving, albeit very slowly. Meanwhile, after a phone call from Japanese premier Noda, Beijing and Tokyo have decided to open negotiations on their territorial disputes: two good pieces of news that have allowed the Asian markets to close the week on positive ground. Hong Kong gains half a percentage point, Shanghai also rises. Tokyo, now down by 0,2%, was significantly affected by Softbank's slump: after announcing its intention to enter Sprint Nextel, the stock lost 16%.
US stocks are almost unchanged, despite the positive signals: S&P +0,02%, Dow Jones -0,14% and Nasdaq -0,08%. The decline depends largely on Apple -2%. Since the highs of September 19, following the launch of the iPhone 5, the stock has lost 11%: just profit taking?
Last week, new applications for unemployment benefits in the US fell to 339, from 367 the previous week. The figure took economists by surprise who had estimated an average of 370 requests. It is the lowest figure since 2008. Also contributing to the climate of renewed confidence is a report by Citigroup which raised its opinion on US equities to "overweight", citing the "aggressive" stimulus plans of the Fed and a particularly positive moment for companies on the earnings front.
Elements that do not seem to work in favor of outgoing president Barack Obama. Despite the brilliant performance of Joe Biden tonight in the head-to-head against Paul Ruyan, Romney's deputy, the polls show the Republican candidate in the lead. In the meantime, US industry is lowering the flag on the PC front. Hewlett-Packard +1,7%, it was overtaken by the Chinese Lenovo from the throne of global PC manufacturers in the third quarter, according to data from research firm Gartner. Hewlett Packard remains the Dow Jones' worst blue chip player since early 2012 with a 45% loss. Gianfranco Lanci from Turin, already a protagonist of Acer's growth, works as vice president in Lenovo.
After two weak sessions, the European Stock Exchanges achieved a good rebound, effectively snubbing the downgrade of Spain by Standard & Poor's, now one step away from the 'junk' rating. In Milan, the FtseMib index rose by 1,2%, London gained 0,9%, Paris +1,4%, the Madrid Stock Exchange also positive +0,9%. Following an uncertain opening, the positive outcome of the Btp auction (for 3,75 billion) and better-than-expected macro data from the USA prompted the listings.
The Treasury found a demand of no less than 6,2 billion euro against an offer of 3,75 billion new 3-year BTPs, placed at a yield of 2,86%, slightly up from 2,75% of the previous mid-September auction. It also easily placed other BTPs at various maturities for 2,25 billion, equal to the maximum amount envisaged.
On the secondary market, the spread between the yield of 10-year BTPs and the German Bund fell to 350, down 10 basis points from the previous evening. The yield settled at 5,00%. And thus the effect of the downgrade of Spain was neutralized. It is the confirmation that the market is now looking to the ECB and is not worried too much about the interventions of the rating agencies.
Increasingly troubled waters for the Tronchetti Provera galaxy. The board of Prelios chose the partner. The board of directors of the company has given the exclusive right to the consortium formed by Massimo Caputi's Feidos and the entrepreneur Roberto Haggiag who preferred this proposal to that of the Americans of Fortress. Before the meeting, which lasted about two hours, Davide Malacalza resigned from his position as director of Prelios. The company itself communicates it in a note. The resignation was 'communicated in a letter sent shortly before the opening of the board meeting, in which the same reiterated the statements previously expressed, as announced by the company in the press release dated 27 September'. On that occasion, Malacalza had referred, through a letter sent to the board itself, to the 'irregularity' of the board procedure and the non-existence of the conditions for business continuity'. At the end of September, the Prelios board of directors mandated a lawyer for any legal action against the director himself.
The banks are pushing Piazza Affari upwards: Unicredit rose by 3,9%, Understanding + 3,4% Popular Milan + 4,1% Mediobanca+2,5%. Up too MontePaschi +4% which reversed course after a declining morning.
The insurance companies remained negative until the closure Fondiaria-Leaves and controlled MilanoAssicurazioni which lost respectively 2% and 1,4%, after Consob challenged Milan's 2011 financial statements. Unipol it fell by 1,2%. The Bologna-based company filed an appeal against the provision with which the Antitrust authorized the merger with the Fonsai group to the Lazio Regional Administrative Court, prescribing the sale of assets to avoid restrictive effects on competition. In the opinion of the company, these requests are considered excessively burdensome with respect to the commitments undertaken.
Generalihowever, it rose by 1,6%. Weak Eni, down by 0,6%, after yesterday's good rise (+1,8%). The price of oil is rising with Wti at 92 dollars a barrel (+0,9%) and Brent at 115,2 dollars (+0,8%). Paolo Scaroni, CEO of the six-legged dog, confirmed the objective of growing hydrocarbon production by more than 3% per year in the period 2011-2015 and by 3% in the period 2015-2022. Of this, by 2022 over 1,3 million barrels of oil equivalent per day will be new production. "This year. The manager underlined – we have discovered over 2 billion barrels of hydrocarbons”.
Saipem closed unchanged. Positive closure for Enel, up 0,7%. The subsidiary Enel GreenPower achieved an increase of 0,9%. Telecom Italy it finished down 0,1%. Among industrialists, it has declined StM -0,1%, after Deutsche Bank lowered the target price to 3,5 euros from 3,9 euros. Good upside of Fiat + 2,3% Pirelli + 2,4% Fiat Industrial +1,3% and Finmeccanica +1,3%. Good upside too Mediaset + 2,4%.
The time for choosing the area on which Roma will build its stadium is approaching. And the experience of Juventus appears. The advisor chosen by the Giallorossi to evaluate the various hypotheses is, in fact, Cushman & Wakefield, one of the most important American real estate services companies owned by Exor, the Agnelli safe that controls the majority of the Juventus club.
As regards the area for the new plant, the most concrete hypothesis seems to be Tor di Valle, where the trot racecourse is already located. On the other hand, there are no ongoing negotiations for the gasometer area owned by ENI, in the Ostiense district, a stone's throw from Testaccio, where the stadium was where Roma won their first Scudetto in 1942.
Roma president James Pallotta spoke of a short list of three areas from which the choice of site for the new stadium will emerge within 2-3 months, for which an investment of 200 million euros is looming and which should be ready for 2016.
