Browsing All Posts filed under »Share capital«

Derivative scandal at Banca MPS: an accurate analysis of the governance would have helped to identify the risks

January 28, 2013

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During these days, the entire Italian market community seems to be taken by surprise from the scandal that hit Banca MPS. The Bank recently discovered huge losses originated by derivatives signed by the former managers with Nomura and Deutsche Bank. Nevertheless, the troubles of the Monte Paschi arose at least 5 years ago, when the […]

Frontis Governance launches the new CG Rating Report

November 15, 2012

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“Corporate governance is one key element in improving economic efficiency and growth as well as enhancing investor confidence. […] Corporate governance also provides the structure through which the objectives of the Company are set, and the means of attaining those objectives and monitoring performance are determined”. (OECD Principles of Corporate Governance, 2004). An effective corporate […]

The renewal season at Italian large banks goes on, but some big players are (still) missing

October 24, 2012

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The Italian banking system has been living a season of deep renewal started on autumn 2011 and continued with the last EGMs of Banca MPS and Intesa Sanpaolo on October 9th and 29th respectively. The co-operative banks were the most affected, in particular Banco Popolare and Banca Popolare di Milano (BPM), that followed completely different […]

Recent capital increases at Italian banks: a real success?

February 2, 2012

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UniCredit’s rights issue closed on last January 27th with 99.8% of new shares subscribed by investors. It seems a great success for the bank and such results might demonstrate a high level of trust from shareholders – that is what the UniCredit’s CEO Federico Ghizzoni said to the press. On January 31st, the Managing Director of […]

Unicredit’s rights issue: a no way out situation for long term shareholders

January 5, 2012

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On December 15th General Meeting, Unicredit’s Directors asked shareholders to approve €7.5 billion share capital increase to be carried on through a rights issue. A capital strengthening was requested by the EBA (European Banking Authority) and Unicredit actually needed it also following third quarter’s €10.16 billion devaluation of Unicredit’s investments. Considering other measures to be taken, Frontis Governance […]

Banco Popolare: the trade-off between dilution and egregious payout, an example of risky “tick-boxing” approach

November 16, 2011

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On January 2010 Banco Popolare launched a rights issue allowing its existing shareholder to subscribe to Banco Popolare’s convertible bonds with the following conditions: nominal value of € 6.15, fixed interest rate at 4.75%, maturity March 2014. Starting from November 2011, bondholders are able to redeem the convertible bonds receiving an amount of shares equivalent […]

Banca Popolare di Milano’s rights issue and the problem of listed cooperative banks in Italy

September 30, 2011

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Last August 25th the Board of Directors of Banca Popolare di Milano (BPM), an Italian listed cooperative bank, has resolved to perform the rights issue approved by BPM’s shareholders at last General Meeting held on June. Maximum amount of the deal: 1.2 billion Euros, versus a current market capitalization of 682 million (closing at September 29th). On […]