Rcs, what happens on the stock market after the Cairo-Heir flop
Because there was a tumble of the RCS stock in Piazza Affari on Monday 17 May
The definitive award of the Arbitration Chamber of Milan on the historic headquarters of RCS, the building in the center of Milan between via Solferino, via Balzan and via San Marco that the group sold in 2013, made the publishing group suffer today in Piazza Affari, where it closed with a minus 8.8%.
HERE IS THE RESULT OF THE RCS-BLACKSTONE AWARD
Friday, after the close of the markets, the outcome of the award between RCS and Blackstone emerged regarding the sale of the real estate complex in Via Solferino in Milan to the US fund. The entrepreneur Urbano Cairo, who took control of RCS after the operation, complained – advised by the well-known lawyer Sergio Erede – that the publishing group had been damaged with the sale of the historic Corriere della Sera headquarters and that Blackstone had held a "usurer" behavior, paying too low a price for the property. According to the final outcome of the award, the transaction was deemed correct and no compensation was awarded to RCS .
THE NOTE (NOT VERY CLEAR FROM RCS)
On Friday evening the RCS group chaired by Urbano Cairi announced that, "with reference to the dispute relating to the transaction that in 2013 led to the sale and simultaneous lease of the real estate complex in Via Solferino", the Arbitration Chamber of Milan announced that, on the the basis of the agreement of two arbitrators, while the third gave an "articulated and motivated dissenting opinion", neither the claims for damages from RCS, nor that of Kryalos were accepted.
THE PROPERTY ISSUE
According to the expert, the property in 2013 had a higher value of 33 million, or 153 million, compared to the price at which it was purchased, even if the Award does not consider this disproportion to be of sufficient importance. The arbitrators acknowledged that "the economic and financial situation RCS was in at the time of the sale affected its choices," but felt that this did not weigh heavily on the sale to Blackstone.
THE TONFO OF CAIRO SEEN FROM CAIRO
However, the award also made it clear that RCS did not "act recklessly or even just incorrectly" but for the protection of corporate assets and therefore, according to the publishing group, "strengthens, like the partial one of last year, the position of the Company before the Supreme Court of the State of New York (before which the proceedings brought by the counterparties are suspended) ".
THE EFFECTS IN THE BAG
The news was badly received by the markets, with sales on the RCS share, which closed with a minus 8.8%, and also on the Cairo Communication share, which controls almost 60% of the Via Solferino group.
THE QUESTION OF MISSING PROVISIONS
What will happen to the RCS budget now given that no questions have been set aside on the issue? This is what some shareholders and many investors are asking, pending a possible intervention by Consob. “The company, having acquired the assessments of its legal advisors, has considered that the conditions for the registration of risk provisions do not exist”, thus the RCS top management replied to the questions of its shareholders in view of the meeting. Another piece of advice from the lawyer Sergio Erede that didn't fit the bill perfectly for the group controlled by Cairo.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/rcs-che-cosa-succede-in-borsa-dopo-il-flop-cairo-erede/ on Mon, 17 May 2021 13:39:34 +0000.