30 October, Corriere della Sera
Tomorrow the Assembly will gather to discuss the increase for 560 million
These are decisive days for Paolo Fiorentino and his plan for the bail of Carige. If the strategic plan designed by the Ceo is not implemented, the corporate continuity of the bank might be at stake, as Fiorentino put in the past few weeks. At this stage, there are no error margins nor changes, and after the assembly of the bondholders started the conversion of the senior bonds for 510 euro (among these, there are Unipol-Sai, Generali, and Intesa), it’s necessary that the partners inject liquidity as soon as possible, also through the sale of fixed assets or subsidiaries. On this matter, today is crucial.
In fact, today the building in Corso Vittorio Emanuele in Milan – an excellent position due to the commercial vocation of the street, one of the most fashionable in Europe – should be sold. Left competing there are Antirion Sgr and the family office Effegi, controlled by the Naples-born family Colella. In the portfolio, worth nearly 120 million euro, there is also an asset located in London, on Hornton street.
The closing of the deal should give oxygen to the finances and allow looking at the new future with more determination. Tomorrow 31st October in Genoa, in fact, the Board of Directors will gather. In the agenda, there are the approval of the quarter up to 30th September and the capital increase. It’s likely that the partner will gather on 20th November or on the following days and the operation, scheduled at the beginning of the new year, will concern Credit Suisse, Deutsche and Barclays. Moreover, this week, the document regarding the capital increase for more than one billion euro destined to strengthen the finances will be deposited.
Over 500 million were converted with the four bond issuances (3 Tier2 and 1 Tier1), the same amount will be requested to the partners, plus 60 additional million for whom converted the subordinate bonds. Concerning the profit and loss account, the performance of the third quarter of the year is not very far from the negative trend of the first six months. The accounts are at loss and still weighted down by the bad loans. The non-performing loans are 1.4 billion euro and their transfer is a priority for the bank. But Fiorentino has first to start the capital increase and strengthen the commercial network of the bank. On this matter, the operational plan includes an increased responsibility of branch managers spread across the territory, in order to reconnect the trust relations compromised during the years. The work is plenty and by the end of the year, the bank will have to take some crucial decisions. The austerity imposed by the European authorities expected a restructured Carige by next spring but also substantially different from the past, when the bank planned to establish Carige Italia and had also an insurance division, Amissima, a brand of the Apollo fund. Transparency will be the most important thing.
After Monte dei Paschi di Siena returned to the Stock Exchange, the two banks of Veneto were acquired by Intesa Sanpaolo, the bad bank was integrated between Ubi and Bper, and the three savings banks of Cesena, Rimini and San Miniato were assigned to Credit Agricole, Carige is the last issue to solve in this banking crisis lasted ten years.
Source: Corriere della Sera
Translator: Cristina Ambrosi