Cattolica shares plunge as €500m 21-for-10 rights issue gets going

Euro debt 230x150
By Olivier Holmey
13 Nov 2014

Società Cattolica di Assicurazione, the Italian insurance company undertaking a €500m rights issue, looks set to provide its underwriters with a nervy few weeks. The shares began trading ex-rights on Monday and have already fallen to within 14% of the subscription price.

Bankers on Monday, when the stock dropped 12%, were relatively sanguine, even though that followed a 17% fall on announcement of the terms on Friday.

“There was good volume in the shares — about 2m shares were traded, which is about 11 times the daily average,” said a banker ...

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