Chronicles Of Depression 2.0: #309: Italy 2
Previously here: Chronicles Of Depression 2.0: #306: Italy
MILAN (Reuters) – UniCredit, Italy’s second-biggest bank, will ask shareholders for 3 billion euros ($4.16 billion) in funds in a turn-about on promises, and offer shares instead of a cash payout this year as it tries to hike capital ratios.
In a statement after a 5-hour special board meeting on Sunday, the buffeted bank said it now expected earnings per share this year of 39 euro cents before the capital increase, down from a previous forecast of 52 euro cents.
UniCredit’s shares were pummelled last week on investor concerns that it would ask them for cash and worries it would struggle without that to reach a Core Tier 1 ratio of 6.2 percent this year. It said Sunday’s plan should bring that ratio to around 6.7 percent.
As recently as Friday, a senior executive was still ruling out a capital increase or a cut in the dividend.
Emphasis added by me.
They’re also try to float new offerings. Good luck with that, pal!
It took less than six hours for the unraveling to become public.