UniCredit rallies as value shines through

10 Jan 2012

Bookrunners for UniCredit’s €7.5bn rights issue were adamant on Monday that the shares and rights would stabilise as the cheap valuation came to the fore. On Tuesday morning their confidence appeared justified — the shares rallied to close up 6% and the rights soared 81% to close the gap to their implied price.

On day one of subscriptions the rights had fallen 65%, well below their implied price. The stock itself fell 12.8% to €2.286 a share, leaving it only 18% above the offer price.

The first day of rights trading usually sees some downwards pressure and the bookrunners remained unflustered but ...

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