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    ANIM   IT0004998065

ANIMA HOLDING SPA

(ANIM)
  Report
Delayed Borsa Italiana  -  11:35 2022-09-23 am EDT
3.040 EUR   -2.31%
09/23CEO of Italy's MPS pressured to seek partners' support for cash call
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09/23Italy Urges Monte Dei Paschi To Get Partners' Backing For $2.5 Billion Capital Raise
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09/22CEO of Italy's MPS pressured to seek partners' support for cash call
RE
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CEO of Italy's MPS pressured to seek partners' support for cash call

09/22/2022 | 03:08pm EDT
The logo of Monte dei Paschi di Siena bank is seen in a bank entrance in Rome

LONDON/MILAN (Reuters) - Monte dei Paschi (MPS) Chief Executive Officer Luigi Lovaglio is increasingly under pressure to secure support from the state-owned bank's main commercial partners for a capital raise of up to 2.5 billion euros ($2.5 billion), three sources close to the matter said.

Lovaglio has been holding off from engaging in negotiations with AXA and Anima over the share sale despite interest from the two partners to invest in MPS as part of strengthened commercial alliances, the sources said on condition of anonymity.

Closer ties could hamper MPS' future search for a merger partner as the state seeks to cut its 64% stake. The banks organising the stock issue, however, have long seen the need for cornerstone investors, sources had previously said.

Given current market prices, the banks face the difficult task of placing new shares valuing MPS at a more expensive multiple than stronger peers such as UniCredit.

After informal meetings in London with AXA and Anima top executives on Thursday, which were first reported by Bloomberg News, Lovaglio has agreed to engage in long-deferred negotiations next week, two of the sources said, adding that it was unclear whether this would lead to an agreement.

Lovaglio has repeatedly said discussions around the cash call had to remain separate from any revision of the commercial agreements MPS has in place with asset manager Anima and insurer AXA.

He has been striving to raise funds without their involvement by mid-November to cut costs through an expensive early retirement scheme for staff.

But volatile markets amid recession fears make it hard to attract buyers for a bank that is worth just 300 million euros after burning through 25 billion euros of investors' money since the global financial crisis.

NO FIRM COMMITMENT

Lovaglio's reluctance to engage with AXA and Anima has irked some of the banks that have signed a preliminary commitment to mop up unsold shares, one of the sources said.

Time to revise the partnerships is now tight, with MPS planning to launch the cash call by mid-October to secure the funding by mid-November.

Anima could contribute up to 250 million euros towards MPS' capital raise, when including an upfront payment for the improved partnership terms, a source had previously said.

Led by Bank of America, Citigroup, Credit Suisse and Mediobanca, the group of banks handling the capital raise can walk away from the deal if feedback from investors is negative.

The banks have no firm commitment in hand from any investors yet, a person close to the consortium said.

Even investors who have long-standing relationships with Lovaglio, such as French entrepreneur Denis Dumont, want to wait to see the outcome of Italy's general election on Sunday, another person close to the matter said.

MPS must secure private funds to avoid breaching European Union rules on state aid. The state is allowed to cover 64% of MPS' capital raise based on the size of the stake it acquired after a 2017 bailout.

Italian rules expiring after November - which allow people to go into retirement up to seven years before their pension age - are forcing MPS to raise cash at a time when investors are waiting to gauge the depth of an expected economic recession in Europe. ($1 = 1.0164 euros)

(Reporting Pamela Barbaglia in London and Valentina Za in Milan; Editing by Paul Simao)

By Pamela Barbaglia and Valentina Za


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ANIMA HOLDING SPA -2.31% 3.04 Delayed Quote.-32.29%
AXA -2.48% 24.03 Real-time Quote.-8.23%
BANCA MONTE DEI PASCHI DI SIENA S.P.A. 3.18% 0.3052 Delayed Quote.-65.78%
BANK OF AMERICA CORPORATION -2.37% 31.73 Delayed Quote.-26.95%
CITIGROUP INC. -2.90% 44.26 Delayed Quote.-26.71%
CREDIT SUISSE GROUP AG -12.40% 4.071 Delayed Quote.-54.11%
MEDIOBANCA S.P.A. -4.20% 7.932 Delayed Quote.-21.54%
UNICREDIT S.P.A. -4.02% 10.798 Delayed Quote.-20.27%
All news about ANIMA HOLDING SPA
09/23CEO of Italy's MPS pressured to seek partners' support for cash call
RE
09/23Italy Urges Monte Dei Paschi To Get Partners' Backing For $2.5 Billion Capital Raise
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09/22CEO of Italy's MPS pressured to seek partners' support for cash call
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09/16Italy's Monte dei Paschi Wins Shareholders' Approval For Proposed $2.5 Billion Rights I..
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09/15Monte dei Paschi investors back latest cash call in stormy markets
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09/15MPS CEO says Axa, Anima welcome to invest in cash call
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09/15Monte dei Paschi shareholders meet to approve cash call
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Financials
Sales 2022 350 M 340 M 340 M
Net income 2022 125 M 121 M 121 M
Net Debt 2022 400 M 389 M 389 M
P/E ratio 2022 8,58x
Yield 2022 6,36%
Capitalization 1 019 M 991 M 991 M
EV / Sales 2022 4,06x
EV / Sales 2023 3,58x
Nbr of Employees 319
Free-Float 83,4%
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Number of Analysts 9
Last Close Price 3,04 €
Average target price 4,61 €
Spread / Average Target 51,7%
EPS Revisions
Managers and Directors
Alessandro Melzi d'Eril Chief Executive Officer, Director & GM
Davide Sosio Group Chief Financial Officer & Director-HR
Livio Raimondi Chairman
Filippo di Naro Investments Director
Francesca Pasinelli Independent Director
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