UBI springs Eu1bn surprise — peers recoil

31 Mar 2011

UBI Banca on Tuesday revealed plans to raise Eu1bn of core tier one capital in a rights issue, surprising analysts who considered it already one of the strongest Italian banks and therefore among the least likely to raise equity. The deal could presage a raft of announcements from the country’s banks over the coming days and weeks, said one market specialist, thus putting UBI in a strong position with first-mover advantage and a healthy capital cushion.

Mediobanca is sole global co-ordinator, sole bookrunner and guarantor for the deal with what bankers described as customary terms and conditions. The underwriter is not thought to be planning on syndicating the deal until later in the process — UBI will seek shareholder approval at the end of ...

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