Sunday, May 5, 2024

Vogon Today

Selected News from the Galaxy

StartMag

All the new issues of Mps (which sbrocca after the scoop of Repubblica)

3 years ago babelfish

All the new issues of Mps (which sbrocca after the scoop of Repubblica)

The scoop of the Republic on the plan not disclosed by Mps, the position of the bank, flock to the advisors to Monte (also Crédit Suisse as well as Mediobanca), the fregola of the Treasury and the initiative of the Sienese foundation. All the latest news on Monte dei Paschi di Siena in the point of Emanuela Rossi

Intense day yesterday for Monte dei Paschi di Siena (MPS) with rumors on the strategic plan to 2025 – with a forecast of a red of 562 million in 2021 – which were not liked by the Tuscan banking group controlled by the Treasury, which intervened by branding as "not definitive and subject to revision ”the document presented on December 17 by the managing director, Guido Bastianini, and never disclosed to the market. In the meantime, we continue to talk about what will happen in the near future – with Unicredit in pole position for a merger – in which there is only one certainty: the Treasury must exit the Rocca Salimbeni shareholder structure by this year, as per agreements with the ECB.

Meanwhile, a municipal council entirely dedicated to the bank took place yesterday in Siena, which ended with the announcement, by the Mps Foundation (in possession of 0.03% of the institute), of a judicial action and with the mandate to the mayor Luigi De Mossi to support the Foundation from an institutional and legal point of view.

Without forgetting that the sword of Damocles still hangs on the fortress of the claimed damages , for about 10 billion, caused by the Antonveneta operation and the Alexandria and Santorini operations.

Here is the point of the (troubled) situation of Mps.

WHAT GREEK WRITTEN ABOUT REPUBLIC

The indiscretions that have bothered Mps are those reported by Andrea Greco in yesterday's La Repubblica and which tell of a plan – on which a confrontation with the EU Antitrust is underway – with "injection of fresh resources for 2 billion 'in 2021' , a year that should close with 562 million red, and the rapid regional focus of the bank to focus on SMEs, cost control with 2,670 redundancies (of which 900 in Siena) and patrimonial resilience, even dancing alone ". Greco says that "the reading of the plan drawn up by the team of CEO Guido Bastianini confirms that it is a compromise between the 'selling' instances of the shareholder Treasury (and the Pd in ​​the government), and the autonomous ones, dear to the banker, to the M5S who indicated it and to the councils of Siena and Tuscany ”. In view, there is no “radical transformation of the operating model and of the technological infrastructure” and a return to the creation of value “as early as 2021” even if the profit is expected only from 2022 with 41 million. "The pivot of the recovery of profitability, to bring the Roe negative today to 6.3% in 2025, more than the credits are the commissions – reads the newspaper -: + 4% compound per year, against an ambitious +7 Average annual% of assets under management, 'supported by the conversion of administered savings'.

This framework includes the “simplification of the operating model” with the closure of 100 branches and the reduction of 2,670 employees. The average cost per worker – today equal to 64,800 euros per year – “will be reduced, rising to 66,300 in 2023, which is 6% less than the almost 70,000 to which the inertial increases envisaged by the national banking agreement would lead”. There is also space for the merger between Mps Capital Services and Mps Leasing & Factoring while as regards the balance sheet, in addition to the 2-2.5 billion increase in the pipeline, "a capital buffer of 1.3 billion is expected in self-financing (starting from 2023), plus 400 million from sales and asset optimization. The capital will also be used to absorb post-pandemic credit losses: NPLs, down to 4.1 billion due to the recent sale of 8.1 billion to Amco, will rise to 5.8 this year, and 6.8 in 2025, for an incidence of 7.4% on assets ".

THE RESPONSE OF MPS

In the morning , Rocca Salimbeni's response arrived that Greco's article contains “a series of unsubstantiated and deceptive information. As already communicated to the market on 17 December – the note reads -, the Bank reiterates that the plan approved by the Board of Directors is not final, as it was approved on the assumption of certain assumptions, such as, among others, in firstly, the necessary comparison with DG-Comp as well as, in its articulation, was also drawn up taking into account the feasibility of a structural operation ".

In particular, the press release points out, "the investigation by DG-Comp, which requires the intervention of the Italian State and will culminate in an authorization provision, has led the Bank – in line with the regulatory provisions in force that supervise the dissemination of information to market – to provide a limited degree of detail regarding the contents of a Plan which is still subject to review. Likewise, the evolution of the aggregative scenario implies times and methods that are currently not definable ".

For these reasons, Montepaschi "has communicated to the market that the approval of the plan is part of a process that has not yet been completed, which requires approval by DG-Comp and the definition of the capital plan to be transmitted to the ECB within the terms already known to the market. The necessary dialogue between the supranational regulators for the aspects of their competence – which could lead to even significant or substantial changes of the same – justifies the fact that the communication of information on the plan has concerned only certain qualifying elements, without entering today to a greater degree of detail ".

THE ARRIVAL OF CREDIT SUISSE AND THE DATA ROOM

Just two days earlier, Mps had announced that it had called Crédit Suisse, alongside the previous advisor Mediobanca, for assistance in finding a partner, and that it had opened a data room to allow interested parties to analyze the accounts and risks of the operation. Following the decision, the awareness that it is difficult to deal quickly with Unicredit and the rise of political resistance due to the fear of a "sale" and exaggerated help from Via XX Settembre. According to Ansa, sources close to the dossier reveal that the Treasury would like to verify the interest in the Banco Bpm game while betting less on Bper, currently engaged in the integration of the branches acquired by Intesa Sanpaolo within the Opas on Ubi Banca. In the meantime, Milano Finanza warns that the advisors would be willing to "make contact with other Italian and international banks to probe the interest in the dossier" because if "Banco Bpm and Bper are the natural candidates" it is true that "the top management of the two institutions are today very cold towards a Siena operation ”.

THE MPS FOUNDATION ANNOUNCES JUDICIAL ACTION AND THE MUNICIPALITY OF SIENA ARTS BY ITS SIDE

The day on the MPS theme in Siena was rather hectic. The Sienese mayor, De Mossi, who said on the sidelines of the municipal council, showed no doubts: “The MPS Foundation must sue the bank to get compensation; it will be a match between technicians, but it was necessary to reaffirm the role of politics in the interest of the city ”. According to reports from Ansa for De Mossi, "the first step is to introduce legal action, then eventually we sit at a table and see if we are stronger or they are stronger".

In the evening, the announcement of the Mps Foundation arrived: a judicial action will be brought against Rocca Salimbeni. "There is already an out-of-court request with a request for formal notice, which will be followed by judicial action," Rossi said as reported by the AdnKronos . "There are more open fronts and some actions are already hinged: against the former directors, against the Bank for the capital increases of 2008, 2011, 2014 and 2015, against the former top management of Mps for derivatives Santorini and Alexandria.

Furthermore – added the president Rossi – there was a criminal sentence of first degree conviction against the former president Alessandro Profumo and the former CEO Fabrizio Viola for the 2015 capital increase: we await the reasons, then the we will evaluate and I think there will be room to initiate further claims for compensation ”. In the hypothesis of a repurchase of the bank's shares, then Rossi clarified that two elements are needed: “Condition the Bank's choices with a view to making the territory grow and create value. An immobile participation is unthinkable ”.

This was followed by the mandate to the mayor De Mossi, from the Sienese city council, to undertake "in collaboration with the other competent bodies (Mps Foundation, Province, Region, parliamentarians elected in the territory), all the necessary actions from an institutional point of view and legal in order to support the Mps Foundation so that it protects, in court against all responsible parties, its rights and interests and requests adequate compensation with the consequent positive economic and social repercussions on our community "towards Montepaschi . To De Mossi, the AdnKronos again reported, also the mandate to "relate with the representatives of the Government (together with the representatives of the other local authorities involved) in order to assess how the interests of our territory are respected in future integration operations" of the credit institution.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutte-le-nuove-grane-di-mps-che-sbrocca-dopo-lo-scoop-di-repubblica/ on Thu, 14 Jan 2021 09:32:18 +0000.