BlackRock cuts stake in Italian lender Monte Paschi

The BlackRock logo is seen outside of its offices in New York January 18, 2012. REUTERS/Shannon Stapleton·Reuters
Reuters
0

MILAN (Reuters) - Asset manager BlackRock (BLK) has cut its stake in Monte dei Paschi di Siena (BMPS.MI) less than a month after becoming the Italian bank's single biggest shareholder, raising questions over who will buy into the lender's imminent capital increase.

A regulatory filing on Wednesday showed that U.S. group BlackRock (BLK) cut its stake in Italy's third-biggest bank to 3.23 percent from 5.75 pct on April 15, the day shares in Monte Paschi fell 10 percent on expectations that it would raise the size of its cash call.

A statement from the bank that day said it was evaluating its capital needs after a media report said that it may increase the size of its rights issue from a planned 3 billion euros ($4.14 billion).

Last Friday the bank's board approved an increase in the cash call to 5 billion euros as it strives to repay state aid and prepares for this year's stress tests on euro zone lenders. It expects to complete the rights issue by mid-July.

BlackRock bought Monte dei Paschi shares on March 18 from a banking foundation that was then the lender's top investor. It became the bank's leading shareholder at the end of last month as the foundation cut its holding further to repay debt.

The world's largest money manager has become a leading investor in several large Italian banks in recent weeks as cheap Italian banking stocks have attracted investors willing to bet on a tentative economic recovery and widespread reforms by new Prime Minister Matteo Renzi to boost growth.

BlackRock's stake sale, however, raises questions over the stability of such investments as a number of Italian lenders prepare to raise about 10 billion euros in cash from investors.

Banco Popolare (BP.MI) is close to successfully completing a 1.5 billion euro rights issue, while Banca Carige (CRG.MI) must raise 800 million euros in the coming months and Banca Popolare di Milano (PMI.MI) 500 million euros.

Fintech Advisory, a U.S.-based investment fund owned by Mexican businessman David Martinez, is now Monte Paschi's top shareholder with a 4.5 percent holding it bought from the banking foundation.

The not-for-profit foundation has sold about 30 percent of Monte Paschi since the start of the year, leaving it with only a 2.5 percent stake.

Shares in Monte dei Paschi rose 3 percent by 1002 ET after a rating upgrade to "neutral" by Goldman Sachs. ($1 = 0.7248 Euros)

(Reporting by Valentina Za and Francesca Landini; Editing by David Goodman)

Advertisement

Recommended Stories

  • Dow Jones Falls As Donald Trump Stock Craters; Cathie Wood Buys This Stock Amid 51% Plunge

    The Dow Jones fell as Elon Musk made a Tesla move. The Donald Trump stock sank on the stock market today. Cathie Wood bought a diving stock.

  • Stock Selloff Spreads as Middle East Tension Rises: Markets Wrap

    (Bloomberg) -- European stocks tumbled, following a selloff in Asia and on Wall Street that was sparked by angst over elevated US interest rates and fueled by signs of fading momentum in China’s economy and rising tensions in the Middle East.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROITrump Media’s $5.3 Billion Selloff Deepens as 270% Rally FizzlesS&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets WrapIran’s Attack on Israel Spark

  • Trump Media stock tanks 18% on move to issue millions of shares

    Trump Media stock slid as much as 16% on Monday after the parent company of Donald Trump's social media platform, Truth Social, filed to issue more than 21 million shares.

  • Nvidia Reveals 8 'Secrets' For When To Sell Stocks. No. 2 Is Key.

    As top growth stocks like Nvidia test key moving averages, keep in mind these proven rules for when to sell stocks.

  • 4 Oversold Stocks to Buy Right Now

    Here are four stocks to buy now that could offer investors upside in the short and long term.

  • Tesla layoffs hit high performers, some departments slashed, sources say

    Tesla management told employees Monday that the recent layoffs -- which gutted some departments by 20% and even hit high performers -- were largely due to poor financial performance, a source familiar with the matter told TechCrunch. The layoffs were announced to staff just a week before Tesla is scheduled to report its first-quarter earnings. The move comes as Tesla has seen its profit margin narrow over the past several quarters, the result of an EV price war that has persisted for at least a year.

  • Elon Musk Agrees With Jamie Dimon's Warning Of Political Polarization 'Creating Risks That Could Eclipse Anything Since World War II'

    JP Morgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon's annual shareholder letter is a moment investors await to understand the thinking of one of the world's most influential bankers. While there has been speculation of Dimon entering politics, with him even gaining the support of billionaire hedge fund manager Bill Ackman to run for president, JP Morgan shared in a statement that "Jamie has no plans to run for office" and that "he is very happy in his current role." That has not stopped him from oc

  • Bitcoin Halving May Lead to Some Sales, Crypto.com CEO Says

    (Bloomberg) -- Bitcoin selling may become evident as the date of the so-called halving nears but the event is set to bolster the price of the largest digital asset longer term, according to the head of the Crypto.com exchange.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROITrump Media’s $5.3 Billion Selloff Deepens as 270% Rally FizzlesS&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets WrapIran’s Attack on Israel Sparks Race to Avert

  • Dow Jones Futures: Another Ugly Market Reversal; Nvidia Skids, Tesla Tumbles On 'Dark Day'

    Mideast fears and surging yields triggered another ugly market reversal. Nvidia and Microsoft fell while Tesla dived.

  • BlackRock’s Kapito Says Stocks Are Primed for a Comeback

    (Bloomberg) -- BlackRock Inc.’s Robert Kapito says the stock market is poised to benefit as investors deploy their outsized holdings of cash.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROITrump Media’s $5.3 Billion Selloff Deepens as 270% Rally FizzlesS&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets WrapIran’s Attack on Israel Sparks Race to Avert a Full-Blown WarApple Faces Worst iPhone Slump Since Covid as Rivals RiseThere’s almo