23rd February 2020

Between Capital Increase And Layoffs, The Difficult Situation Of Unicredit

2019 has been a period of crisis in many social, political and economic aspects, and in any case of enormous changes. In particular it has been for the ancient and problematic banks of Italy, which according to the analysis of the European Central Bank have proved to be among the least solid in the Continent, as confirmed by many sites including the newborn and practical https://migliori-investimenti.com/. Specifically, we would like to talk today about Unicredit, the Milanese banking group led since last June by Jean Pierre Mustier, under whose leadership the bank has decided to operate an extensive capital increase, which will take place today Monday, February 6, 2017.

This is an increase of no less than 13 billion euros, a huge sum also for the Milanese credit institution, which currently has capital of 16.5 billion. The increase would therefore practically double the value of Unicredit, an atypical and unpredictable scenario that risks bringing with it the backlash of excessive dilution. Specifically, Unicredit will offer its shares at a discounted price of 38% with respect to the Terp, the theoretical ex-rights price. The shares will then be sold at 8.09 euros each until February 17, an offer valid also for all small shareholders who will now have to decide whether or not to believe in the ambitious project of Mustier and partners. In the first case they will exercise their option rights and will therefore have to fundamentally double their investment to avoid dilution. In the second case, on the contrary, the shareholders will sell their shares, thus demonstrating their distrust of the operation. Then there is actually a third side of the coin, where, if you want, you can partially participate in the increase: in practice, you have to sell part of the rights using the proceeds to buy new shares, obviously exercising the rights still present in the portfolio.

A maneuver therefore complex and dictated by necessity rather than by a free and advantageous opportunity, a fact that has rightly raised many doubts among investors and analysts themselves: in fact only in recent weeks Unicredit has dismissed more than 10% of its staff, putting on sale more than 900 branches throughout Italy that are unlikely to be disposed of quickly. These and other factors have affected the perception of shareholders and the market, which are now in danger of holding unexpected surprises in store for the Milanese bank. For its part, Unicredit has presented a three-year plan that provides for inevitable exits but not only: according to the institute, about 3,900 workers who left voluntarily (with incentives until 2024) will in fact enter about 2,000. In addition, it seems that better and fairer conditions have been guaranteed for the workers, but it is more a matter of small numbers to hide a great reality: the bank is in a moment of extreme difficulty, so much so that in order to get out of the corner it has proposed an increase in capital able to double the value of the institution. Surely the next few days will be hot and very important for the management of Piazza Gae Aulenti, and there is undoubtedly the possibility that the increase will be resolved according to the best wishes of Unicredit. However, there do not seem many small shareholders determined to believe in a project that already in the past (in 2012 the last recapitalization) has not led to the desired results.

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