Marco Morelli begins to outline together with the advisor banks (JP Morgan and Mediobanca in the lead) the new plan that will lead to the 5 billion euro capital increase of Monte dei Paschi. A process that will go on in stages and will have among its key points the voluntary conversion of subordinated bonds, the only way that the top management of MPS have identified to try to reduce the amount of the recapitalization envisaged for the end of 2016, before it enters into game and another important capital increase overlaps, that of Unicredit, which could divert the interest of investors.
MPS's new industrial plan should be officially approved on 24 October, therefore before the Tuscan bank's shareholders' meeting called for mid-November. And that is precisely the period in which, according to some rumors, it should start the offer of voluntary conversion of bonds into shares for holders of subordinated bonds.
According to some financial sources, the dossier foresees the involvement of institutional investors, who currently hold around 2,6 billion of subordinated bonds, but probably also of the retail public, which owns around 2,4 billion of securities.
The aim is to expand the amount of possible memberships by also exploiting the bonds placed by MPS with 40 small savers, expiring in 2018.
As regards the conversion price, the hypothesis would be to place it below the nominal value, but at a premium compared to market quotations.
According to the timetable outlined by the Chief Executive Officer, the possibility of voluntarily converting the bonds could be granted until the beginning of December, closing close to the constitutional referendum scheduled for December 4th.
At the same time, JP Morgan and Mediobanca, i.e. the banks currently at the helm of the guarantee consortium for the capital increase, will continue work on the acquisitions front, trying to find funds interested in buying a share of Monte dei Paschi. On this front, the dry No of Intesa Sanpaolo should be underlined. The president of the bank, GianMaria Gros-Pietro, reiterated today on the sidelines of a hearing in the Chamber that he has no interest in the Tuscan credit institution, "Our position - said the manager - has been expressed several times and it hasn't changed."
According to some rumors reported by Corriere della Sera, negotiations are said to be underway with some sovereign wealth funds of Qatar and other Asian countries with the aim of raising up to 1,5 billion euros.
The bank needs 5 billion euros. A part of them will be covered through the agreement with an anchor investor, another through the voluntary conversion of the bonds. The remaining portion will most likely correspond to the amount of the capital increase planned for the end of the year.
