MILAN, Feb 8 (Reuters) - UniCredit investors will take up a 500 million euro shortfall left when its biggest shareholder pulled out of plans to raise 3 billion euros ($3.84 billion), the Italian bank and its adviser Mediobanca said.
Just two days after Cariverona said it would not subscribe to the issue, Italy's second-biggest bank said in a statement on Sunday 'Mediobanca has fully confirmed the commitments ... to the capital increase of ... 3.0 billion euros.'
Mediobanca said in a separate statement it had received commitments from institutional investors to subscribe to the issue, but did not name the funders.
Newspapers on Sunday had said Libya, which already holds 4.6 percent of the bank, and Turin-based foundation CRT, which has 3.8 percent, could step into the breach.
'The safety net ... is already in place and should be announced in the first few days of this week,' leading business daily Il Sole 24 Ore said, without quoting sources.
The Libyan embassy in Rome was not immediately available for comment and neither was CRT on the newspaper reports.
The Cariverona foundation, which holds just over 6 percent of Italy's second-biggest bank, said on Friday it would not take up its 500 million euro share of the offer.
The commitment of investors to reach the 3 billion euro figure should help UniCredit reach its target of a Core Tier 1 ratio -- which measures capital against risky assets -- of 6.7 percent.
A source close to UniCredit had told Reuters on Friday Cariverona's decision not to contribute the 500 million euros would equate to 9 basis points from its Core Tier 1 ratio.
UniCredit is boosting capital by a total 6.6 billion euros through this issue and by saving 3.6 billion euros through paying out shares instead of cash on 2008 results.
Other names suggested by newspapers on Sunday as possible contributors to pick up Cariverona's languishing share included Germany's Munich Re or Allianz, Carimonte holding or the Italian Ligresti family.
TERRITORIAL CHOICES
Verona's mayor, Flavio Tosi, said in an interview with Il Sole 24 Ore published on Sunday that he supported Cariverona's decision to pledge its funds to the region and not to UniCredit.
'The foundation had to choose between the bank (UniCredit) and the territory and it has chosen the second,' Tosi told the newspaper.
A range of local authorities receive funds from the foundation and its 5 billion euros of assets, according to its website.
Analysts have suggested Cariverona's abstention could be to exert pressure for its own choice of chairman to replace Dieter Rampl, even though other shareholders have expressed support.
Tosi told Il Sole 24 Ore that given the towns of Verona, Vicenza and Belluno were 'the guiding spirits of UniCredit ... it's not nice if the top executives show a different reality, especially if it's a foreign one.'
Rampl took the post after UniCredit bought Germany's HVB bank in 2005.
UniCredit's governance committee could meet on Monday to decide which names to put forward to the board on Feb. 12 for the top posts. Newspapers expect both Chief Executive Alessandro Profumo and Rampl to be confirmed in their posts.
(Editing by Elaine Hardcastle, Bernard Orr)
(Writing by Nigel Tutt and Jo Winterbottom; nigel.tutt@thomsonreuters.com; +39 0266129723)
($1=.7807 Euro)
($1=.7807 Euro) Keywords: UNICREDIT/
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Just two days after Cariverona said it would not subscribe to the issue, Italy's second-biggest bank said in a statement on Sunday 'Mediobanca has fully confirmed the commitments ... to the capital increase of ... 3.0 billion euros.'
Mediobanca said in a separate statement it had received commitments from institutional investors to subscribe to the issue, but did not name the funders.
Newspapers on Sunday had said Libya, which already holds 4.6 percent of the bank, and Turin-based foundation CRT, which has 3.8 percent, could step into the breach.
'The safety net ... is already in place and should be announced in the first few days of this week,' leading business daily Il Sole 24 Ore said, without quoting sources.
The Libyan embassy in Rome was not immediately available for comment and neither was CRT on the newspaper reports.
The Cariverona foundation, which holds just over 6 percent of Italy's second-biggest bank, said on Friday it would not take up its 500 million euro share of the offer.
The commitment of investors to reach the 3 billion euro figure should help UniCredit reach its target of a Core Tier 1 ratio -- which measures capital against risky assets -- of 6.7 percent.
A source close to UniCredit had told Reuters on Friday Cariverona's decision not to contribute the 500 million euros would equate to 9 basis points from its Core Tier 1 ratio.
UniCredit is boosting capital by a total 6.6 billion euros through this issue and by saving 3.6 billion euros through paying out shares instead of cash on 2008 results.
Other names suggested by newspapers on Sunday as possible contributors to pick up Cariverona's languishing share included Germany's Munich Re or Allianz, Carimonte holding or the Italian Ligresti family.
TERRITORIAL CHOICES
Verona's mayor, Flavio Tosi, said in an interview with Il Sole 24 Ore published on Sunday that he supported Cariverona's decision to pledge its funds to the region and not to UniCredit.
'The foundation had to choose between the bank (UniCredit) and the territory and it has chosen the second,' Tosi told the newspaper.
A range of local authorities receive funds from the foundation and its 5 billion euros of assets, according to its website.
Analysts have suggested Cariverona's abstention could be to exert pressure for its own choice of chairman to replace Dieter Rampl, even though other shareholders have expressed support.
Tosi told Il Sole 24 Ore that given the towns of Verona, Vicenza and Belluno were 'the guiding spirits of UniCredit ... it's not nice if the top executives show a different reality, especially if it's a foreign one.'
Rampl took the post after UniCredit bought Germany's HVB bank in 2005.
UniCredit's governance committee could meet on Monday to decide which names to put forward to the board on Feb. 12 for the top posts. Newspapers expect both Chief Executive Alessandro Profumo and Rampl to be confirmed in their posts.
(Editing by Elaine Hardcastle, Bernard Orr)
(Writing by Nigel Tutt and Jo Winterbottom; nigel.tutt@thomsonreuters.com; +39 0266129723)
($1=.7807 Euro)
($1=.7807 Euro) Keywords: UNICREDIT/
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.