The Italian government And Unicredit they would be ready to stop negotiations on Mps. This is what he reports Reuters. At the end of July, the second Italian bank had agreed to start exclusive negotiations for the purchase of “some selected assets“of Mps controlled by Mef with a share equal to 64%.
THEthe government believes excessive the request for UniCredit of a recapitalization of over 7 billion euros because it would make the operation “too punitive” for Italian taxpayers. The diversity of views on the size and costs of job cuts in the oldest bank in the world, as well as Unicredit’s way of calculating the value adjustments on Mps’ liabilities have proved to be one of the main obstacles, he reports. Reuters.
The parties thus concluded that it is impossible to reach an agreement on the basis of the conditions set in July, which required the acquisition of “selected assets” of the Monte dei Paschi to increase UniCredit’s earnings per share by 10% and leave its capital unchanged.
Other sources close to the dossier in the morning explained that “it’s normal” that in the crucial moment “the tension rises”. What is almost certain, according to what is gathered, is that a fixed point will be put in place by October 27th, the day on which the board of the Unicredit quarterly report. In addition to how much capital to inject into the Monte with a fork that fluctuates between 5 and more than 7 billion (Orcel’s request), the issue of the perimeter would still be the cause of the negotiations.
The pre-conditions at the end of July are clear. Unicredit is willing to take Mps, as well as having zero impact on capital, cleared of legal risks, without npl (to be sold to Amco), without the product companies (Mps leasing & Factoring, Mps fiduciaria, Mps Capital services). Among the nodes to be defined, that of redundancies, which could amount to 6-7 thousand people, with an estimated cost of up to 1.4 billion.
#Mps #close #break #Unicredit #government #recapitalization #billion