Wednesday, January 04, 2012

More on UniCredit from Canada - odd near silence from elsewhere?

CNBC TV mentioned the fall in share price of UniCredit, the large Italian bank mentioned here earlier, but was silent on the share suspension. Dealings resumed as the latest report from Canada has the largest Italian bank falling by a reported 13.2% versus the 9.9% I reported earlier from Yahoo. Here are the two particular quotes with the links:

The bank's share price plummeted by 9.9%, devaluing it to such an extent that trading in the stock on Milan's FTSE exchange was suspended.
The fall signalled a massive lack of confidence in the Italian bank and its attempts to shore up its financial strength.
Banking industry expert Ralph Silva told Sky News the rights issue had been a "complete and utter failure".

Canadian Business:

UniCredit shares fell by 13.2 per cent to €5.49, as investors were spooked by the scale of the discount in the company's rights issue. Other European banks, many of which are looking to raise money to plug financial holes, also saw their share prices take a hit amid concerns that they too would be forced to price their cash calls at low levels too.....

Earlier in the day, UniCredit shares were briefly suspended after the cash call was priced at a 69 per cent discount to Tuesday's close, much lower than most predictions. So far, only 24 per cent of the shares on offer have been taken.



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