UniCredit rallies after rights drop as value shines through

Bookrunners for UniCredit’s €7.5bn rights issue were adamant on Monday that despite a 65% fall in the value of the rights, and a 13% slump in the stock, that the prices would stabilise as the cheap valuation came to the fore. On Tuesday morning their confidence appeared justified — the shares rallied and the rights soared 77% to close the gap to their implied price. Trading throughout the rest of the week was also solid.