Enel sale raises Eu2.2bn but questions remain over Morgan Stanley’s holding

31 Oct 2003

Italy's government sold a 6.6% stake, comprising 400m shares, in electricity generator Enel this week in the largest straight equity offering of the year. But the deal, which is an attempt to repeat the success of Citigroup's jumbo Eu2bn KPN block trade, proved a hard sell to investors.

Sole bookrunner Morgan Stanley had hoped that the removal of the overhang resulting from the government's sale would convince buyers to take the shares at a slight premium to Wednesday's close of Eu5.41. The bank went out on Wednesday evening with a range of Eu5.42-Eu5.44, a premium of ...

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