Rights issues run on in periphery
Italy and Spain on Monday re-introduced bans on short-selling as stock markets fell with banks among the hardest-hit. The move affects all financial stocks in Italy but should have limited impact on the €2.2bn of rights issues in the market for insurers Unipol and Fondiaria-Sai, a deal which was already unattractive for arbitrageurs said bankers.
But, putting regulation to the side, southern European rights issues are having a rough time. Banco BPI, raising up to 400m on a non-underwritten basis, fell below its 0.50 offer price on Monday as the shares lost 4.1% to close at 0.494.
BPI is raising cash to repay a
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