Jean Pierre Mustier, the dynamic CEO of Unicredit, wants to jump ahead with the capital increase. For today he has convened an extraordinary meeting of the board of directors for the final fulfilments requested by Consob and for a preliminary examination of the accounts which will be definitively approved on 9 February.
But all expectations are set for Wednesday when Unicredit will lift the curtain on the price increase of 13 billion euro which Mustier aims to close quickly by February. Analysts predict that the shares will be offered to the market with a discount of between 30 and 40% on the Terp, i.e. on the theoretical price after the detachment of the option right, for a sum close to 15 euros per share.
The amount of the recapitalization is impressive but all the forecasts on the eve are favorable and point to the success of the Unicredit operation, the increase of which is already guaranteed by a solid banking consortium which will take charge of any unopted shares.
The increase will modify the equity balances which will become more international. Capital Research, which has already become the first shareholder, should subscribe pro rata and so will the Arabs of Aabar and probably the foundations of Turin and Verona, while the foundations of Modena and Monte di Bologna should exit.
Meanwhile, the presentation document relating to the increase shows that the ECB has requested Unicredit "to present, by 28 February 2017, a strategy on impaired loans, supported by an operational plan to address the issue of the high level of loans deteriorated. Although the actions underpinning the Strategic Plan are aimed, among other things, at mitigating the weaknesses of the Unicredit group also highlighted by the ECB following the 2016 SREP, at the date of the Registration Document there is a risk that the actions of the Strategic Plan are not able to adequately address the weaknesses identified by the ECB".
As for Consob, the go-ahead for the registration document prepared by Unicredit in view of the capital increase arrived from the Commission on Monday morning. This document, 1.049 pages in all, together with the informative and summary note which has yet to be published, constitutes the material made available to shareholders and investors to evaluate the opportunity to subscribe to the capital increase.
STOCK UPDATE
By mid-morning, Unicredit stock dropped 3,6%, making it the worst stock on the Ftse Mib.
