Deals
UniCredit Soars on Plan to Raise $13.8 Billion, Slash Costs
- Bank plans to lower annual costs by 1.7 billion euros by 2019
- UniCredit plans loan sales, won’t pay a dividend for 2016
UniCredit's Capital Plan: Where Does the Money Go?
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UniCredit SpA jumped the most in six years after it laid out a plan to boost profitability that relies on cutting costs and shedding bad loans as Italy’s slow growth holds back revenue.
The stock rose 16 percent to 2.81 euros in Milan trading, paring the year’s decline to 44 percent. Deutsche Bank AG analyst Paola Sabbione described the plan, which includes a 13 billion-euro ($13.8 billion) rights offer, as “a good trade-off between profitability and capital strengthening.”