Deals
UniCredit Shareholders Back $14 Billion Cash Call in Revamp Bid
- Bank plans to use most of the cash to cover loan losses
- Offer could lead to bigger stake for foreign investors
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After Banca Monte dei Paschi di Siena SpA failed to raise funds on the market, attention now turns to a much bigger cash call by UniCredit SpA.
Italy’s largest bank won permission from investors Thursday for a 13 billion-euro ($14 billion) rights offer -- almost as much as its market value -- to carry out a turnaround plan under Chief Executive Officer Jean Pierre Mustier. Shareholders meeting in Rome also approved the conversion of every 10 shares into one new share after the stock dropped more than 45 percent last year.