EU: Rumors swirl of €13bn fund-raising by UniCredit

UniCredit SpA is considering raising as much as 13 billion euros according to press reports, with one news agency saying that there’s speculation about a merger between Italy’s largest lender and France’s Societe Generale SA.

The bank will probably decide on the timing of the capital increase after the results of Italy’s constitutional referendum next month, the Wall Street Journal reported on Monday, citing people familiar with the matter. Italy’s Ansa said on Monday that a merger between the two lenders is circulating widely in financial circles, without elaborating. Officials for UniCredit and Societe Generale declined to comment.

UniCredit Chief Executive Officer Jean Pierre Mustier is under pressure to boost capital buffers and reverse a slide in shares that has eroded more than half the company’s market value this year. The Milan-based lender, which is set to present a new business plan on Dec. 13, is considering raising at least 5 billion euros through a share sale and converting 3 billion euros of subordinated hybrid equity-linked securities, people familiar with the matter have said.

Full Content: Telegraph

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